The tokenization infrastructure company AlloyX has launched a tokenized money market fund on Polygon. This initiative aims to combine bank-custodied assets with DeFi-native strategies, highlighting the accelerating trend of real-world asset (RWA) growth on the blockchain.
According to the company's announcement, the fund is named Real Yield Token (RYT), representing shares of a traditional money market fund, with its underlying assets custodied by Standard Chartered Bank's Hong Kong branch, adhering to regulatory requirements and audits.
Similar to traditional money market funds, RYT invests in short-term low-risk instruments such as U.S. Treasury bonds and commercial paper. Through tokenization, these fund shares can be traded on-chain, and holders can also utilize them within the decentralized finance ecosystem.
Notably, RYT can serve as collateral in DeFi protocols, allowing users to borrow against their holdings and reinvest the proceeds to enhance yields, a strategy known in the DeFi space as looping.
The product is deployed on the Polygon Ethereum scaling network, chosen for its low fees, fast transaction speeds, and robust DeFi ecosystem.
AlloyX's launch comes at a time of surging interest in tokenized money market funds, as institutions actively explore blockchain-based cash management solutions. Among the most notable is BlackRock's launch of the USD Institutional Digital Liquidity Fund (BUIDL), which provides institutional investors with a tokenized investment channel for dollar yields through Treasury bonds and repurchase agreements.
Goldman Sachs and BNY Mellon have also announced plans to launch tokenized money market funds that support around-the-clock settlement, but these products typically lack DeFi-specific features such as looping and cross-decentralized protocol composability—key differentiators for RYT.
Money market funds have become a focal point for tokenization. Asset managers aim to bridge traditional finance and digital markets, providing investors with on-chain access to familiar tools.
According to a Moody's report from June, tokenized short-term liquidity funds are described as "smaller in size but rapidly growing products," noting a significant increase in the number of related products since 2021. The credit rating agency estimated the market size for tokenized money market funds at $5.7 billion at that time.
In the U.S., tokenized money market funds are gradually gaining attention as a means to maintain the attractiveness of cash-like assets, especially in the context of the passage of the GENIUS Act and the rising adoption of stablecoins.
According to Bloomberg, JPMorgan strategist Teresa Ho stated, "Instead of depositing cash or Treasury bonds, it’s better to deposit money market fund shares, so you don’t lose interest. This reflects the diversity of money market funds."
Related: Stablecoin market cap rises, synthetic asset sector strengthens again
Original: “AlloyX Launches Tokenized Fund Custodied by Standard Chartered Bank on Polygon”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
