Baillie Gifford, a 118-year-old investment firm based in the Scottish capital of Edinburgh, has teamed up with global custody giant BNY to unveil a fixed-income tokenized fund, the companies said on Monday.

According to a press release, the Bailey Gifford Enhanced Yield Fund (BAGEY) is dollar-denominated, and offers qualified investors access to an actively managed, short-term portfolio of public corporate bonds using the Ethereum and Solana public blockchains.

The fund is managed by a UK regulated Open End Investment Company (OEIC), a type of Collective investment fund A limited liability company is structured as a capital spread from multiple investors in equity or bonds.

The fund, which currently offers a yield of approximately 7%, will be available to qualified investors in the UK, Switzerland and the Cayman Islands, subject to applicable laws, regulations and distribution restrictions.

Tokenization of real-world assets (RWAs) has taken the traditional financial world by storm, but simply wrapping legacy infrastructure into a digital layer won’t fundamentally improve finance, said Theo Golden, head of digital assets and tokenization at Baillie Gifford.