Baillie Gifford is offering the Baillie Gifford Enhanced Yield Fund in Singapore, an actively managed short-duration bond fund. The fund is natively tokenised: investors receive tokens on Ethereum and the blockchain is the legal record of ownership. It is a US dollar UK-regulated OEIC investing in government and corporate bonds, with a yield of around 7%, a duration of about two years and an average credit rating of BBB. The firm sees tokenisation as a route to faster settlement and greater transparency.

What it means: Most tokenised funds so far are money market funds or simple wrappers around existing products. The difference here is that the blockchain is not a copy of a traditional register but the register itself. That is a meaningful step, because it moves tokenisation from liquidity tools into actively managed investment products. For the European market, the question is how such a product fits UCITS rules and central securities depository rules, and how the EU's DLT pilot regime applies. For Greek fund managers, the news is a reminder that large competitors are experimenting actively while the Greek market remains largely traditional. For investors, a 7% yield should not hide the fact that these are mid-grade bonds carrying credit risk, regardless of the technology. Tokenisation changes how ownership is recorded and settled, not the nature of investment risk. Greek fintech developers can study how transfer restrictions and investor identification are built into such tokens.

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