AlloyX has rolled out the Real Yield Token (RYT), a bank-custodied and fully compliant tokenized fund on Polygon, bridging traditional finance with DeFi-native strategies.
AlloyX, a leading tokenization infrastructure firm, has announced the launch of its first tokenized money market fund on Polygon, signaling a major step forward in merging traditional financial assets with decentralized finance (DeFi).
Earlier coverage: Trump-Linked WLFI Burns $1.43M in Tokens After $1M Buyback
The new product, called the Real Yield Token (RYT), represents shares in a conventional money market fund. The underlying assets — short-term, low-risk instruments such as U.S. Treasurys and commercial paper — are held under custody by Standard Chartered Bank in Hong Kong, ensuring compliance with regulatory standards and independent audits.
By tokenizing the shares, AlloyX enables investors to hold and trade them onchain, opening the door to DeFi strategies. Unlike traditional money market funds, RYT tokens can also be deployed within DeFi ecosystems as collateral, allowing holders to borrow against their positions and reinvest proceeds to amplify returns, a practice widely known as “looping.”
Source: Sandeep Nailwal
Polygon, chosen as the fund’s deployment platform, offers low-cost transactions, high speed, and a thriving DeFi ecosystem, making it an attractive home for tokenized real-world assets (RWAs).
Differentiating from Wall Street’s Tokenization Push
The launch comes amid a surge of institutional interest in tokenized money market funds. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and products announced by Goldman Sachs and BNY Mellon have already pushed tokenization into the spotlight as a next-generation financial strategy.
However, AlloyX’s offering distinguishes itself with a clear DeFi-native approach. While Wall Street products focus on institutional settlement and cash management, RYT integrates directly into DeFi protocols, offering 24/7 utility, looping strategies, and composability with other decentralized applications.
“Traditional MMFs give you yield, but RYT makes those same instruments active within the onchain ecosystem,” AlloyX said in its announcement.
Tokenized MMFs Are Gaining Global Momentum
The broader market for tokenized money market funds is still relatively small but expanding rapidly. A June report from Moody’s estimated the sector’s size at $5.7 billion, noting that adoption has accelerated significantly since 2021.
The tokenized Treasury market has reached $8 billion in value, with an average yield to maturity of 3.93% as of Oct. 2. Source: RWA.xyz
Analysts believe these funds are becoming increasingly attractive as investors seek safe, cash-like assets that can be integrated into digital markets. They also align with growing global stablecoin adoption and new regulatory clarity under the GENIUS Act in the U.S.
“Instead of posting cash, or posting Treasurys, you can post money-market shares and not lose interest along the way,” JPMorgan strategist Teresa Ho told Bloomberg recently. “It speaks to the versatility of money funds.”
With AlloyX entering the market alongside traditional giants, the battle to define the future of tokenized liquidity is now firmly underway.