Once a financial journalist, now an investment manager, Theo Golden is spearheading Baillie Gifford’s exploration of tokenised funds. He argues the industry has crossed a “credibility threshold” and the next wave of innovation is already accelerating.
When Theo Golden left journalism to join Edinburgh-based Baillie Gifford as an investment manager, he brought with him a journalist’s instinct for probing the underlying story. That curiosity has now placed him at the forefront of one of the most closely-watched developments in asset management: the tokenisation of funds.
Golden co-manages Baillie Gifford’s long-running Strategic Bond Fund, but his remit has expanded into a different kind of bond altogether: the kind between financial markets and digital infrastructure.
Since 2016, when he first invested in crypto in a personal capacity, Golden has tracked the evolution of blockchain and tokenisation. Today, he is one of the firm’s leading voices on how this technology could reshape the future of fund distribution and client outcomes.
A pilot with promise
Earlier this year, Baillie Gifford completed what Golden describes as a landmark project: the UK’s first fully tokenised Ucits feeder fund, built on Ethereum. The fund directly issued units onto the blockchain, creating an on-chain book of record rather than the mirror structures or special-purpose vehicles that have sometimes characterised tokenisation efforts elsewhere.
The pilot, run in collaboration with the UK’s financial regulator, the Financial Conduct Authority (FCA), tested the mechanics of issuance, trading, minting and redeeming tokens, and even dividend distribution. Golden himself became one of the first UK investors to hold units of a regulated fund in a self-custodied digital wallet in a moment he describes as “really hitting home what this technology could do.”
The regulator’s engagement was a key part of the process. “The FCA were hugely supportive,” Golden says. “They helped us navigate what was, for all parties, uncharted territory. For us, success meant proving that the technology works, that it improves what we already do and that there’s a large opportunity ahead. It also meant building conviction both internally and externally, with our regulator.”
Beyond operations: client outcomes
At first glance, tokenisation appears to be an operations story: streamlining back-office functions, cutting costs, and reducing settlement times. Estimates often cite savings of 20–30% on administrative processes. But Golden stresses that Baillie Gifford’s interest quickly grew into something broader: distribution, client access and innovation in product design.
“The real opportunity lies in delivering better outcomes for clients,” he says. “Tokenisation could make high-conviction strategies available to new groups of investors and help companies diversify across asset classes. That’s where the energy is.”
For Golden, this is not about chasing assets under management. “We don’t see ourselves as asset gatherers,” he says. “Our responsibility is to manage assets honourably and deliver on what we promise. With tokenised funds, that means more than just investment performance. It’s about ensuring the technology itself delivers the right features, transparency and client experience.”
Demand and credibility
One question hovering over any new financial innovation is whether demand is real or manufactured. Commenting on our industry survey, Golden points to the fact that nearly 40% of respondents report high demand for tokenised funds, while half report moderate demand. Only 11% said they saw little or no demand.
“That’s striking,” Golden argues. “In many innovation surveys you see indifference dominate. Here, scepticism is minimal. Tokenisation has crossed a credibility threshold. Even if enthusiasm isn’t universal, demand is clearly present.”
The profile of potential clients is varied. Early adopters range from family offices and digitally native companies to stablecoin issuers and traditional institutions. Golden believes the key will be delivering genuine use cases rather than simply repackaging existing products. “The hype is there, but through that hype we must deliver tangible outcomes. That’s where we want to be: working in that golden spot between technology and client need.”
Why the slow rollout?
Despite years of discussion, tokenised funds remain rare. In Europe, Franklin Templeton has regulatory approval for a Ucits tokenised fund, while others are experimenting. So why has adoption been slower than many predicted?
Golden points to infrastructure and regulation rather than lack of appetite. “Anyone who believes in technological innovation can get frustrated,” he admits. “But frustration doesn’t get you anywhere. You have to prove the outcome is better. In the past, service providers and compliance frameworks weren’t ready. But in the last two to three years, we’ve seen huge progress.”
That includes improvements in digital transfer agency, know-your-customer and anti-money-laundering tools as well as the maturing of tokenisation platforms themselves. Crucially, regulators are also shifting gears. “Regulation is not an obstacle: it’s a catalyst,” Golden insists. “It ensures good outcomes. The FCA showed us that. Regulators want this to happen, but safely. Our job is to prove it’s as safe, if not safer, than existing models.”
Public vs private blockchains
One debate in tokenisation is whether public or private blockchains are the right platform. Golden makes no secret of his preference. “Public chains offer a massive uplift in composability, interoperability and inclusion,” he says. “They lower the barrier to innovation. Private chains may feel safer, but they risk creating siloed pools of capital and gatekeepers. That’s not the right long-term outcome.”
Still, he acknowledges that each manager and regulator will have their own risk tolerance. “It’s too early to rule anything out. But if you want to capture the flywheel effect, where innovation builds on itself, public chains are more promising.”
A compressed timeline
Perhaps the most telling development, Golden suggests, is how quickly industry expectations have shifted. “Two years ago, managers would say, ‘Maybe in ten years.’ Now most expect to launch tokenised funds in one to five years. That’s a remarkable compression.”
The implications go beyond cost savings. Survey respondents highlighted access to a broader range of assets and increased liquidity as the main benefits: strategic opportunities rather than just operational efficiency. “That mindset shift is important,” Golden says. “Institutions are thinking about tokenisation as an enabler of access.”
The road ahead
So will Baillie Gifford launch a fully tokenised fund? Golden is cautious. The pilot proved the model works, but the firm is taking what he calls a “thoughtful approach.” As a 100-year-old partnership, it prizes durability and reputation. “We’re having conversations with clients, service providers and regulators about what best-in-class looks like. For us, the question is always: can we deliver this honourably?”
For now, Golden is focused on refining the technology, building internal and external conviction, and ensuring the next steps are grounded in client benefit. But his enthusiasm is evident. “This is only the first innings,” he says. “The momentum is there, the infrastructure is maturing and the regulatory catalysts are in place. It’s an incredibly exciting time.”
From opera singer to financial journalist to fund manager, Theo Golden has already navigated an unconventional career path. Now, as he helps Baillie Gifford and the wider industry explore the frontier of tokenised funds, he may once again be ahead of the curve — this time on a journey that could transform how investors everywhere access capital markets.
The Funds Europe-Caceis report into tokenisation can be viewed by following this link.
