Baillie Gifford's tokenized bond fund.

On June 22, Baillie Gifford, a 286 billion pound UK manager, launched BAGEY with regulator approval. It holds short-term corporate bonds, runs on the Ethereum and Solana blockchains, and pays eligible investors around 7 percent.

Most tokenized funds are a wrapper. The real fund sits at a bank, and a token on-chain stands in for a share, backed one to one. BAGEY is issued on the blockchain itself. The chain is the register of who owns what, so holders own the fund, not a claim on a copy kept elsewhere.

That removes a layer. The token tracks no off-chain share, and no custodian's records must match the ledger. Ownership and recourse sit where the asset is recorded.