The Hong Kong Securities and Futures Commission (SFC) has approved its first tokenized fund. The Baillie Gifford Enhanced Yield Fund (BAGEY) is an actively managed fund that holds short-duration government and corporate bonds.
Baillie Gifford is an independent investment manager owned and operated by 54 partners. As at April 30, 2026, Baillie Gifford reported that assets under management totaled $ 260 billion.
The fund was developed with BNY and targets professional investors. BAGEY is issued natively on a public blockchain, with the token representing the investor’s holding, and the blockchain serving as the official record of ownership. BNY provides the tokenization and wallet infrastructure for BAGEY. NatWest Trustee and Depositary Services Limited is the fund’s Depositary.
Investors can subscribe and redeem Fund tokens using fiat currency or stablecoins, initially USDC. Baillie Gifford is an investor in Circle (NYSE:CRCL), the company that issues USDC.
Theo Golden, Head of Digital Assets and Tokenization at Baillie Gifford, said the SFC approval is an important milestone as Hong Kong aims to establish itself as a top hub for tokenization.
Golden said that most tokenized funds place a digital wrapper around existing funds; BAGEY is different.
“Investors hold the fund directly on blockchain, creating a simpler ownership model for increasingly digital financial markets. Our ambition is not tokenization for its own sake, but to build investment infrastructure that clients can trust – with cleaner ownership, stronger governance and faster settlement. Same discipline; better rails.”
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