Crypto
Baillie Gifford Debuts Tokenized Bond Fund BAGEY with 7% Yield Target
Baillie Gifford has launched BAGEY, its first tokenized bond fund, which settles in USDC or fiat and targets a yield of approximately 7%. The Edinburgh-based asset manager oversees $237B to $260B in assets.
The Enhanced Yield Fund is an actively managed short-duration bond portfolio with a roughly two-year duration and an average credit quality rating of BBB. It holds a mix of public corporate and government bonds, minted natively on public blockchains, Ethereum and Solana serving as the legal register of ownership.
Custody and tokenization are handled by BitGo Bank & Trust, BNY, Anchorage Digital, and Archax. The fund operates with daily net asset value calculations and has a minimum investment requirement of $100.