Hong Kong Approves First Native Tokenised Fund, Offering T+0 Redemptions Up to 10% of NAV
Updated
Updated · Markets Media · Jul 15
Hong Kong Approves First Native Tokenised Fund, Offering T+0 Redemptions Up to 10% of NAV
3 articles · Updated · Markets Media · Jul 15
Summary
Hong Kong’s SFC authorized Baillie Gifford Enhanced Yield Fund as the city’s first fully native tokenised investment fund for professional investors, expanding regulated tokenised products into fixed income.
BAGEY holds short-duration government and corporate bonds and is issued directly on public blockchains, with the token itself serving as the investor’s legal holding and ownership record.
Professional investors can subscribe and redeem in US dollars using fiat or stablecoins—initially USDC2—with the fund available on Ethereum and Solana and supporting T+0 redemptions up to 10% of NAV.
BNY co-designed the product and will provide tokenisation and wallet infrastructure, while NatWest Trustee and Depositary Services will act as depositary.
The approval advances Hong Kong’s push to build regulated tokenised real-world asset markets under initiatives including the HKMA’s Fintech 2030 strategy and Project Ensemble.
Can Hong Kong’s new tokenized fund truly challenge BlackRock in the race for digital assets?
With assets on multiple blockchains, is finance unifying or fracturing into digital islands?
Is tokenizing finance a true revolution, or just adding complex new risks to old assets?
Hong Kong Approves First Fully Native Tokenized Fund: Inside the BAGEY Launch and Its Global Regulatory Impact
Overview
On July 15, 2026, Hong Kong approved the Baillie Gifford Enhanced Yield Fund (BAGEY), marking a major milestone in its goal to become a global hub for regulated digital assets and tokenization. BAGEY stands out as a pioneering, fully native tokenized fund within Hong Kong’s regulatory framework, built on blockchain technology and designed for eligible professional investors. This approval signals a bold step forward for Hong Kong’s financial landscape and highlights its ambition to integrate innovative digital asset solutions into traditional markets, setting a strong example for the future of finance in the region.