Baillie Gifford has introduced its tokenised short-duration bond strategy to eligible accredited investors in Singapore.

The Baillie Gifford Enhanced Yield fund (BAGEY) invests in government and corporate bonds, yielding roughly 7% with an approximately two-year average duration and BBB average credit quality.

The tokenised fund, issued on public blockchain infrastructure, was brought to Hong Kong earlier this year in July, with deployment initially on Ethereum with Solana to follow, the firm said.

Calvin Liew, Baillie Gifford client director in Singapore, said: “Singapore is a natural market for the BAGEY fund. Investors here are sophisticated, internationally minded and already thinking seriously about how tokenisation can be used in investment markets.”

“BAGEY gives investors access to something different: an actively managed fixed income strategy, targeting an attractive yield, through an investment built natively onchain from the outset.”

Sandy Jones, director of digital assets at Baillie Gifford, said: “For us, tokenisation is most compelling when it makes an investment product more useful. BAGEY’s native architecture allows us to build for faster settlement, greater transparency and, over time, greater interoperability across digital financial markets.”

“Money-market funds proved that regulated investments can operate onchain. We think the next step is showing that the same infrastructure can carry actively managed investment strategies.”

Baillie Gifford said the fund is designed for investors already operating onchain, as well as professional investors looking to access traditional investment strategies through digital infrastructure.