AlloyX launches the Real Yield Token (RYT), a tokenised money market fund on Polygon, merging traditional finance with DeFi to enable collateralised yields and expand access for retail investors amid growing institutional interest in tokenised real-world assets.

AlloyX has launched the Real Yield Token (RYT), a tokenized money market fund on the Polygon blockchain, marking a notable development in the growing integration of traditional finance assets with decentralized finance (DeFi) strategies. The fund represents shares in a conventional money market fund, with underlying assets custodied by Standard Chartered Bank in Hong Kong, ensuring regulatory compliance and audit transparency. RYT invests in low-risk, short-term instruments like US Treasury bills and commercial paper, akin to traditional money market funds, but through tokenization, it enables onchain tradability, expanding utility for investors within DeFi ecosystems.

A defining feature of RYT is its ability to be used as collateral across various DeFi protocols, allowing holders to borrow against their assets and reinvest the proceeds to amplify returns—a technique known in DeFi as "looping." This composability and native DeFi functionality distinguish RYT from similar tokenized money market fund products launched by financial giants like BlackRock, Goldman Sachs, and BNY Mellon, which primarily focus on institutional investor access to tokenized fund shares without incorporating such DeFi-native yield optimisation strategies.

The choice of Polygon as the infrastructure layer leverages the network’s advantages of low transaction fees, rapid settlement, and a thriving DeFi ecosystem, making it an ideal platform for bridging the traditional finance world with blockchain-based finance solutions. AlloyX’s approach points to a broader trend where tokenized real-world assets (RWAs) on blockchains are gaining momentum among asset managers and institutional investors seeking efficient and transparent liquidity management options in digital formats.

Industry data underscores this trend; the market for tokenized US Treasury instruments alone has reached approximately $8 billion, offering a 3.93% average yield as of recent figures. Moody’s in June characterised tokenized short-term liquidity funds as a modest yet rapidly growing product segment, noting a marked acceleration since 2021 when the market was valued at $5.7 billion. Regulatory developments like the GENIUS Act in the United States and the increasing adoption of stablecoins further support the growing utilisation of tokenized money market funds as an appealing alternative to traditional cash equivalents.

Teresa Ho, strategist at JPMorgan, highlighted the versatility of these instruments in an interview with Bloomberg, noting that instead of merely holding cash or Treasury bills, investors can hold money market fund shares and continue to earn interest, illustrating the evolving landscape of liquidity management and investment products.

Concurrently, other major financial institutions have also entered the tokenized money market fund space. Goldman Sachs and BNY Mellon announced a collaboration to offer tokenized money market funds with 24/7 settlement capabilities on blockchain platforms, working alongside prominent fund managers such as BlackRock, Fidelity, and Federated Hermes. However, unlike AlloyX’s RYT, their solutions currently do not integrate DeFi-native functions like looping or cross-protocol composability, pointing to different strategic approaches within the financial sector’s ongoing digitisation.

AlloyX’s RYT launch thus exemplifies an innovative synthesis of traditional asset management with DeFi mechanics, broadening participation to stablecoin users and retail investors who can now unlock additional yield through advanced blockchain-enabled collateral strategies. This initiative reflects the accelerating adoption of tokenized real-world assets in financial market infrastructure and the expanding role of DeFi protocols in mainstream asset management.

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Source: Noah Wire Services

Verification / Sources

  • https://fr.cointelegraph.com/news/alloyx-tokenized-money-market-fund-polygon?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound - Please view link - unable to able to access data
  • https://www.alloyx.com/post/alloyx-s-ryt-taps-polygon-for-defi-looping-brings-tokenized-mmf-rails-to-stablecoin-users - AlloyX has launched the Real Yield Token (RYT), a tokenized money market fund on the Polygon network. RYT combines bank-custodied assets with DeFi strategies, allowing users to engage in 'looping'—using tokens as collateral to amplify yields. Standard Chartered Bank provides custody services, ensuring regulatory compliance and transparency. Polygon's low fees and high throughput make it an ideal platform for this initiative, aiming to bridge traditional finance with decentralized finance.
  • https://www.goldmansachs.com/pressroom/press-releases/2025/bny-goldman-sachs-launch-tokenized-money-market-funds-solution - Goldman Sachs and BNY Mellon have collaborated to introduce tokenized money market funds, enabling institutional investors to purchase shares recorded on Goldman's blockchain platform. This initiative includes participation from major fund managers like BlackRock, Fidelity Investments, and Federated Hermes. The move aims to enhance the efficiency and transferability of money market fund shares, marking a significant step towards integrating blockchain technology into traditional finance.
  • https://www.cnbc.com/2025/07/23/goldman-sachs-bny-money-market-fund-digital-tokens.html - Goldman Sachs and Bank of New York Mellon have developed a system allowing institutional investors to invest in tokenized money market funds, with ownership recorded on Goldman's blockchain platform. The project has attracted participation from major fund managers, including BlackRock, Fidelity Investments, and Federated Hermes. This development aims to streamline transactions and enhance the utility of money market funds through blockchain technology.
  • https://cointelegraph.com/news/alloyx-tokenized-money-market-fund-polygon - AlloyX has launched the Real Yield Token (RYT), a tokenized money market fund on the Polygon network. RYT merges bank-custodied assets with DeFi strategies, allowing users to engage in 'looping'—using tokens as collateral to amplify yields. Standard Chartered Bank provides custody services, ensuring regulatory compliance and transparency. Polygon's low fees and high throughput make it an ideal platform for this initiative, aiming to bridge traditional finance with decentralized finance.
  • https://www.mexc.com/en-TH/news/alloyx-launches-tokenized-money-market-fund-on-polygon-amid-growing-rwa-demand/117493 - AlloyX has introduced the Real Yield Token (RYT), a tokenized money market fund on the Polygon network. RYT combines bank-custodied assets with DeFi strategies, allowing users to engage in 'looping'—using tokens as collateral to amplify yields. Standard Chartered Bank provides custody services, ensuring regulatory compliance and transparency. Polygon's low fees and high throughput make it an ideal platform for this initiative, aiming to bridge traditional finance with decentralized finance.
  • https://cointelegraph.com/news/alloyx-tokenized-money-market-fund-polygon - AlloyX has launched the Real Yield Token (RYT), a tokenized money market fund on the Polygon network. RYT combines bank-custodied assets with DeFi strategies, allowing users to engage in 'looping'—using tokens as collateral to amplify yields. Standard Chartered Bank provides custody services, ensuring regulatory compliance and transparency. Polygon's low fees and high throughput make it an ideal platform for this initiative, aiming to bridge traditional finance with decentralized finance.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative was published on October 3, 2025, with the earliest known publication date of similar content being September 3, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not been republished across low-quality sites or clickbait networks. The update may justify a higher freshness score but should still be flagged. (cointelegraph.com)

Quotes check

Score: 10

Notes: No direct quotes were identified in the narrative.

Source reliability

Score: 9

Notes: The narrative originates from Cointelegraph, a reputable organisation known for its coverage of blockchain and cryptocurrency news. The report is based on a press release from AlloyX, a Hong Kong-based fintech company. AlloyX has a public presence and a legitimate website, enhancing the credibility of the information. (cointelegraph.com)

Plausability check

Score: 9

Notes: The claims made in the narrative are plausible and align with recent developments in the tokenized money market fund space. The choice of Polygon as the infrastructure layer leverages the network’s advantages of low transaction fees, rapid settlement, and a thriving DeFi ecosystem, making it an ideal platform for bridging traditional finance with blockchain-based finance solutions. The report lacks specific factual anchors such as names, institutions, and dates, which could reduce the score and flag it as potentially synthetic. The language and tone are consistent with the region and topic, and the structure does not include excessive or off-topic detail unrelated to the claim. The tone is not unusually dramatic, vague, or inconsistent with typical corporate or official language.

Overall assessment

Veredict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is fresh, originating from a reputable source, and presents plausible claims. The lack of direct quotes and specific factual anchors is noted but does not significantly impact the overall assessment.