Baillie Gifford adopts Ethereum as legal register for UK funds - Crypto Briefing

Unlike most tokenized funds that use a traditional off-chain register with blockchain tokens as digital twins, BAGEY treats on-chain tokens as the official record of ownership. If the Ethereum blockchain confirms an investor holds units, that represents their legal stake in the fund.

Fund Structure and Details

The fund was announced on June 22, 2026, with units initially made available on Solana before transitioning to Ethereum as the register of record starting August 5, 2026. The strategy involves holding a portfolio of government and corporate bonds targeting a yield of approximately 7%.

Investors can trade daily with a minimum ticket of $100, though eligibility is restricted to professional investors in the UK, Switzerland, and the Cayman Islands. BNY Mellon provides the tokenization and wallet infrastructure, while NatWest Trustee and Depositary Services oversees fund operations.

Regulatory Framework

This development became possible following the Financial Conduct Authority's policy statement PS26/7 on April 30, 2026, which permits distributed ledger technology to be used as unitholder registers within OEIC structures. Baillie Gifford launched its fund within months of this guidance.

Market Implications

For Ethereum, this represents a shift from settlement experiment to official record-keeping for regulated financial products. The multi-chain approach—distributing on Solana while registering on Ethereum—suggests asset managers may view blockchains as interchangeable infrastructure components.

Despite the innovation, the 7% yield target remains aspirational rather than guaranteed, and investors still face traditional bond risks. While the $100 minimum lowers financial barriers, access restrictions mean this isn't yet a retail on-ramp to crypto investing.