Baillie Gifford Adopts Ethereum as Legal Register for UK Funds

BAGEY Uses Ethereum as the Legal Ownership Register

BAGEY represents a significant shift in how blockchain technology can support regulated investment funds. Rather than using tokens merely as digital claims that must be reconciled with a separate legal register, BAGEY makes the tokens themselves the legal representation of an investor’s interest in the fund. If the blockchain records that an investor holds units, those units represent the investor’s ownership.

The fund was announced on June 22, 2026. Its units were initially made available on Solana, while unit minting on Ethereum began on August 5, 2026. BAGEY is therefore a multi-chain product in its distribution, although Ethereum is attracting particular attention because it serves as the fund’s register of record.

Bond Strategy Targets Approximately 7% Yield

Behind the blockchain infrastructure, BAGEY follows a conventional investment strategy. The fund holds a portfolio of government and corporate bonds and targets a yield of approximately 7%. Investors can trade units daily, while the minimum investment for eligible investors is $100.

BAGEY is designed for professional investors in jurisdictions including the UK, Switzerland and the Cayman Islands. The relatively low minimum investment does not make the product broadly available to retail investors because eligibility remains restricted by investor status and jurisdiction.

BNY Mellon provides the tokenization and wallet infrastructure. Its role includes creating the tokens and managing the accounts that hold them. NatWest Trustee and Depositary Services serves as the fund’s depositary. Within UK fund structures, the depositary is the independent entity responsible for overseeing the fund’s operation and safeguarding its assets.

FCA Policy Enabled Blockchain-Based Fund Registers

The regulatory development underpinning BAGEY is the Financial Conduct Authority’s policy statement PS26/7, published on April 30, 2026. The statement explains how distributed ledger technology can be used within authorized fund structures, including allowing DLT-based unitholder registers for open-ended investment company structures.

An OEIC, or open-ended investment company, is a standard UK fund structure that issues and cancels shares as investors enter or leave the fund. Its unitholder register records who owns those shares. Under the FCA’s guidance, that ownership record can be maintained on a blockchain.

Baillie Gifford launched BAGEY within months of the policy guidance being issued. The period between the FCA policy statement and the fund’s first announcement was approximately two months, highlighting how quickly the regulatory change translated into a live fund initiative.

Why This Matters for Asset Managers and Ethereum

BAGEY’s importance for Ethereum is primarily about its function rather than its market price. A public blockchain serving as the legal source of truth for a regulated UK fund moves blockchain adoption beyond settlement experiments and toward formal record keeping.

The fund’s multi-chain structure also suggests that asset managers may view different blockchains as interchangeable distribution and infrastructure rails rather than selecting a single permanent network. Solana handles the initial availability of units, while Ethereum performs the legal register role, giving each network a distinct function within the product.

Investors must still consider the underlying risks. The approximately 7% figure is a target rather than a guarantee, and the fund’s government and corporate bond portfolio remains exposed to interest-rate and credit risk regardless of which blockchain records ownership. Access is also limited: although the $100 minimum reduces the financial threshold, BAGEY is not a retail investment on-ramp because eligibility is restricted to professional investors in specified jurisdictions.

Frequently Asked Questions

What is BAGEY?

BAGEY is a regulated fund that holds government and corporate bonds, targets approximately 7% yield, permits daily trading, and represents investor ownership through blockchain-based units.

Which blockchains does BAGEY use?

BAGEY made units available on Solana and began minting units on Ethereum on August 5, 2026. Ethereum serves as the legal register of record for ownership.

Can retail investors buy BAGEY?

No. BAGEY is aimed at eligible professional investors in jurisdictions including the UK, Switzerland and the Cayman Islands. The $100 minimum does not remove those eligibility restrictions.