Hong Kong’s Securities and Futures Commission (SFC) has authorized Baillie Gifford’s Enhanced Yield Fund (BAGEY), an actively managed portfolio of short duration government and corporate bonds issued natively on public blockchains. The tokenized fund was developed with BNY, and is available to professional investors on Ethereum and Solana.
While many tokenized funds are digital wrappers of an underlying conventional share, BAGEY is digitally native, so that the token itself constitutes the investor’s holding and the blockchain serves as the legal record of ownership. This eliminates the need for parallel record keeping systems.
Eligible investors can subscribe and redeem using fiat currency or USDC stablecoins. The fund supports same day redemptions for up to 10% of net asset value and provides an indicative NAV for secondary market trading. It is structured as a UK regulated open ended investment company (OEIC) and denominated in US dollars.
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