AlloyX, a Hong Kong-based stablecoin infrastructure company, has launched its Real Yield Token (RYT), a tokenized money market fund (MMF), on the Polygon network. Standard Chartered Bank will act as the custodian and registrar for the fund. This collaboration aims to bridge the gap between traditional regulated fund products and blockchain-based financial infrastructure for institutional investors.
The RYT represents exposure to the China Asset Management Select USD Money Market Fund. Unlike conventional shares, RYT tokens are issued and transacted on Polygon's blockchain. Standard Chartered ensures the custody and recordkeeping of off-chain assets.
AlloyX has integrated Chainlink's Proof of Reserve and NAVLink to provide real-time transparency into the assets backing the token. This integration addresses institutional concerns about on-chain financial products. AlloyX was acquired by Solowin Holdings for $350 million earlier this year, solidifying its position as a stablecoin and tokenization provider in the Asia-Pacific market. With RYT, AlloyX is adding decentralized finance (DeFi) mechanics to enhance liquidity and yield. RYT combines with DeFi to create yield-enhancing strategies within a compliance framework.
The project reflects a broader trend toward real-world asset (RWA) tokenization, which has attracted startups and established asset managers. Other firms, such as Franklin Templeton and Ondo Finance, have also launched tokenized MMF structures. AlloyX's collaboration with Standard Chartered aims to reassure institutional clients regarding custody, compliance, and oversight. Polygon's low-cost settlement network provides scalability for fund transactions.
RYT is designed for capital efficiency and maximizing yield. Users can amplify liquidity and returns through "looping," which involves supplying tokens as collateral, borrowing against them, and repeating the process, all while remaining within regulatory guardrails. Polygon's low fees and high throughput optimize both yield and on-chain activity for these loops.
Polygon Labs is supporting the launch of RYT through technical integration and ecosystem expansion. During its exclusivity window, Polygon Labs is providing AlloyX with DeFi integration, technical assistance, and growth initiatives. While initially exclusive to Polygon, there are plans to expand to other networks later. Polygon will remain AlloyX's preferred deployment for expansion even after the exclusivity period.
The fund operates on daily cycles with T+1 settlement, and selected data is published on-chain for transparency. This provides institutional investors with the compliance and auditability they expect, combined with DeFi's speed and composability.
AlloyX joins a growing list of institutions and governments building financial applications and payment platforms on Polygon, including Stripe, Franklin Templeton, Apollo, and BlackRock. This launch highlights the increasing growth of real-world assets (RWAs) on the blockchain. Tokenization makes shares tradable on-chain, enabling holders to use them within decentralized finance ecosystems. RYT can be used as collateral across DeFi protocols, allowing users to borrow against their holdings and reinvest proceeds to boost yields.
