HKAN | June 22

Global investment management firm Baillie Gifford, with over $260 billion in assets under management, has officially launched the UK’s first FCA-approved tokenised fund on the Ethereum blockchain — marking a significant milestone for institutional adoption of blockchain technology in traditional finance.

A Regulatory First for the UK

The fund is the first tokenised investment vehicle in the UK to be formally approved by the Financial Conduct Authority (FCA), the country’s top financial regulator.

This move brings tokenised assets—previously popular in crypto-native ecosystems—into regulated finance, opening the door for other traditional investment firms to follow.

Why Ethereum?

The fund is built on the Ethereum blockchain, leveraging its:

Mature smart contract ecosystem

Security and decentralization

Global developer support

Compatibility with token standards like ERC-20 and ERC-1400

Ethereum's proven infrastructure makes it the top choice for institutional-grade tokenisation, enabling transparent, real-time fund operations.

What Is a Tokenised Fund?

A tokenised fund uses blockchain to represent ownership of fund shares digitally, offering:

Increased transparency and auditability

Improved liquidity and faster settlement

Fractional ownership and broader accessibility

Lower operational costs

These benefits help bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi).

Industry Reactions

The announcement has been met with excitement in both the crypto and financial services sectors. Experts believe this could pave the way for more:

Blockchain-powered mutual funds and ETFs

Integration of digital assets in traditional portfolios

FCA guidance on broader crypto adoption

“This is a bold and forward-looking move by Baillie Gifford. It positions the UK as a leader in regulated blockchain finance,” said a fintech analyst.

Final Thoughts

Baillie Gifford’s launch of the UK’s first FCA-approved tokenised fund on Ethereum is a landmark moment in financial history. As blockchain moves further into regulated markets, the line between traditional finance and crypto continues to blur — and Ethereum remains at the heart of it.

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