Baillie Gifford is the first asset manager to launch a fully tokenised fund in the UK.
The tokenised fund is a feeder to Baillie Gifford’s existing Strategic Bond Fund, which has been one of the company’s core products for more than 25 years.
In a statement, the company told Capital Pioneer that the tokenisation of the feeder fund started with a six-month pilot programme on February 11, which was “designed to explore the transformative potential of blockchain technology on the firm’s operations and business model”.
During this period, the tokenised fund was to be exclusively available to a select group of internal, whitelisted clients, the company noted, adding the “controlled environment” would allow Baillie Gifford to “rigorously evaluate the technology and gather valuable insights”.
Theo Golden, investment manager at Baillie Gifford, hailed the move as a “ground-breaking initiative”, which marked “a significant milestone in the evolution of financial services in the UK”.
“The pilot represents a significant leap forward in our mission to leverage blockchain technology for enhanced operational efficiency and client service,” said Golden. “By tokenising the Strategic Bond Feeder Fund, we’re not just exploring new territory – we’re actively shaping the future of asset management.”
The tokenised fund will operate on the public Ethereum Blockchain, and is supported by Archax.
Baillie Gifford said it had been in regular contact with the FCA and will continue to share its findings throughout the pilot programme.
The Edinburgh-headquartered asset manager was first revealed in a report on tokenisation in Europe, released by the European Fund and Asset Management Association (EFAMA) on June 20.
“Baillie Gifford received FCA authorisation for and launched the first tokenised UK OEIC earlier this year,” the report said.
EFAMA noted that several “other UK managers now offered tokenised versions of money market funds or other liquidity products domiciled across the EU with UK distribution permissions”.
The report section focuses on the UK’s progress on tokenisation and digital assets within the investment sector.
It noted that “the FCA has been supporting the industry on tokenised funds” for several years and confirmed “a model for utilising DLT in fund registries in 2023.”
EFAMA said it is expected to build on this with a consultation on guidance later this year.
At the end of March 2025, Baillie Gifford had £197bn in assets undermanagement and operated out of 11 global locations.
