Baillie Gifford has launched its tokenised investment fund to professional investors in Hong Kong.
The Baillie Gifford Enhanced Yield Fund allows investors to hold fund tokens representing exposure to short-duration government and corporate bonds on public blockchains. The structure avoids the use of special purpose vehicle arrangements.
The fund, developed in partnership with BNY, expands Hong Kong’s tokenised investment market into the fixed income sector.
The blockchain serves as the official record of ownership, with the token representing the investor’s holding.
The asset manager designed this structure to remove parallel record-keeping. It also aims to reduce operational complexity and create a more transparent framework for digital markets.
Eligible professional investors can subscribe to and redeem fund tokens using fiat currency or stablecoins, starting with USDC. The US dollar-denominated fund is available on the Ethereum and Solana networks.
Using these stablecoin payment rails, the fund will support T+0 redemptions of up to 10% of its net asset value. It will also feature an indicative net asset value for secondary market trading.
Regulated digital asset infrastructure
“Investors hold the fund directly on blockchain, creating a simpler ownership model for increasingly digital financial markets,”
Theo Golden, Head of Digital Assets and Tokenisation at Baillie Gifford said.
“Our ambition is not tokenisation for its own sake, but to build investment infrastructure that clients can trust, with cleaner ownership, stronger governance and faster settlement.”
Featured image credit: Edited by Fintech News Hong Kong, based on image by Frolopiaton Palm via Magnific