Anchorage Digital to Provide Custody and Onchain Access for BAGEY, the First Fully Native UK-Regulated Tokenized Fund

TL;DR: BAGEY, Baillie Gifford's Enhanced Yield Fund, a UK-authorised regulated OEIC, is the first fully native UK-authorised tokenised fund. Eligible professional investors can custody BAGEY at Anchorage Digital Bank N.A., subscribe and redeem tokens seamlessly, and deploy their holdings directly into onchain finance.

Tokenized funds have promised to bring traditional assets onchain for years. In practice, most have delivered a compromise: a token that represents a claim on an offshore wrapper, backed almost exclusively by T-bills and money market instruments. The token is onchain; the fund is not.

BAGEY breaks that pattern on both counts. Launched by Baillie Gifford, the 118-year-old UK-based investment manager, BAGEY brings tokenization beyond cash management into actively managed fixed income. Its primary register, its books and records, live onchain, with tokenization enabled by BNY. It is also the first tokenized fund to move beyond T-bills into an actively managed, short-duration portfolio of corporate and sovereign bonds, giving eligible professional investors access to credit markets that tokenized products have never reached. Anchorage Digital, home to America’s first federally chartered digital asset bank, provides custody for BAGEY and connects it onchain.

Direct ownership, not a wrapper

Most tokenized funds place the underlying shares in a special purpose vehicle and layer a token on top; the holder owns a claim on the wrapper, not the fund. BAGEY's register sits natively onchain, so a BAGEY token is a share in the fund itself, an  FCA-authorised OEIC, with the direct ownership and legal recourse that comes with it. It is fully onchain, fully regulated, and built that way from day one rather than retrofitted.

Seamless subscriptions and redemptions 

Through Anchorage Digital, eligible professional investors of BAGEY can:

• Custody BAGEY tokens at Anchorage Digital Bank N.A., a federally chartered bank
• Subscribe and redeem tokens seamlessly 
• Move holdings across supported networks via allowlisted transfers
• Deploy BAGEY holdings into onchain finance while assets remain in custody

"Institutions have been asking for tokenized products that don't compromise on structure or custody standards. BAGEY is the first fund to get this right; fully native, fully onchain, and custodying it at Anchorage Digital means professional investors get direct ownership of the fund and the ability to put that position to work onchain, without leaving the custody of a federally chartered bank." —Nathan McCauley, CEO and Co-Founder, Anchorage Digital

"BAGEY is a new category of fund: the books and records live fully onchain, and eligible professional investors can subscribe and redeem in USDC in an instant rather than waiting days for settlement. Partnering with Anchorage Digital gives our holders a custodian built for that structure, and access into onchain finance that a conventional custody arrangement could never offer." —Sandy Jones, Director Digital Assets, Baillie Gifford 

The template for every tokenized fund that follows

BAGEY sets a new bar for what a tokenized fund can be: direct onchain ownership instead of a wrapper, corporate and sovereign credit instead of T-bills alone, and seamless settlement instead of legacy fund operations. For crypto-native allocators, that means a regulated, higher-yielding bond fund they can hold, transfer, and deploy as collateral entirely onchain. For institutions, it means the fund structures they know, rebuilt with the settlement speed and composability they've been waiting for.

As asset managers follow Baillie Gifford onchain, Anchorage Digital provides the custody foundation that connects those funds to the rest of the onchain economy. To learn more, get in touch.

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