AlloyX launches tokenized money market fund on Polygon with Standard Chartered custody, merging regulated assets.
AlloyX has introduced a tokenized money market fund on Polygon, aiming to merge traditional custody with blockchain-based strategies. The launch marks the growth of real-world regulated assets onchain, which are bringing compliance and yield-oriented products to decentralized finance.
AlloyX Brings Regulated Fund with Standard Chartered Custody
The product, called the Real Yield Token (RYT), represents shares of a regulated money market fund. Standard Chartered Bank in Hong Kong will serve as the custodian and registrar of the assets to ensure that they are not only subject to regulations but also undergo regular audits. According to AlloyX, the arrangement combines the properties of regulated instruments like US Treasurys and commercial paper with DeFi-native “looping” structures for yield amplification.
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Polygon co-founder Sandeep Nailwal confirmed their exclusive launch. He said AlloyX selected Polygon because of its proven rails for tokenization and settlement. Polygon is already handling billions worth of stablecoin payments every month and it makes it a preferred option when it comes to institutional finance. AlloyX described the Real Yield Token as a bridge between transparent onchain settlement and regulated banking infrastructure.
The fund offers the investors to trade in onchain shares while holding the exposure to traditional short-term instruments. At the same time, the looping mechanism allows holders to borrow their RYT positions and reinvest the proceeds. This strategy of being capital efficient is already popular in DeFi but now gets a regulated layer through the oversight of Standard Chartered.
Industry observers point out that the launch represents a larger shift. Tokenization of real-world assets is gaining momentum, with banks, asset managers, and regulators showing interest in using blockchain for increased efficiency. By using Standard Chartered as custodian, AlloyX reassures institutional investors that assets remain secured under a globally recognized banking framework.
AlloyX, Polygon Drive Tokenized Money Growth
Analysts say the product shows Asia’s rise as a hub for compliant digital asset innovation. Moreover, Hong Kong promotes regulated tokenization. In addition, institutions in the region show strong demand for stablecoin infrastructure and yield products. AlloyX, acquired by Solowin for $350 million, has positioned itself as a leader in this segment.
Nailwal highlighted how shipping for institutions requires getting the balance of transparency, compliance, and real yield with the speed and scale of blockchain right. He said the Real Yield Token does this by using both custodial oversight and Polygon-native strategies to achieve this. The combination of T+1 settlement, onchain transparency and looping is an example of how regulated finance can have DeFi mechanics without giving up oversight.
Market experts are of the view that the entry of Standard Chartered signals the beginning of widespread adoption of banking. DeFi has faced criticism for lacking transparency. However, regulated tokenized money market funds provide oversight and efficiency. As compliance costs rise, unregulated providers may fail and face liquidation, leading to more market consolidation.
AlloyX’s launch is seeing how real-world assets and DeFi can meet in existing blockchain networks. By combining Standard Chartered’s custody with Polygon’s infrastructure, the project serves as a precedent for institutional-grade tokenization. As traditional finance displays its support for this issuance structure, the divorce between traditional finance and on-chain markets may stay gray.
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