Hong Kong-based stablecoin infrastructure firm AlloyX has launched the RYT (Real Yield Token), a tokenised money market fund (MMF) that grants stablecoin holders access to institutional-grade yields by uniquely integrating with native DeFi strategies on the Polygon network. The underlying regulated assets of the fund are custodied and overseen by Standard Chartered Bank (Hong Kong).
This launch introduces a novel model in the rapidly expanding Real-World Asset (RWA) sector by bridging the liquidity of traditional finance (TradFi) with the capital efficiency of decentralised finance (DeFi). While other tokenised MMFs offer steady, passive returns, RYT differentiates itself by incorporating a âloopingâ strategy. This DeFi-native mechanism allows users to recursively supply tokens as collateral and borrow against them, amplifying both on-chain utility and potential yields, all backed by regulated money market fund assets.
The architecture ensures that while users engage with DeFi protocols, the underlying cash components remain within an established and compliant institutional framework. Standard Chartered Bank (Hong Kong) provides the custody and acts as registrar for the fund, with daily dealing cycles operating on T+1 settlement and selected fund data published on-chain for transparency.
Dr. Thomas Zhu, co-founder and CEO of AlloyX Group, explained that the collaboration was key to ensuring regulatory adherence while enabling innovation. âWith Polygon-based looping to amplify utility and bank-grade tokenized MMF rails supplying the underlying cash component, RYT aims to bridge DeFi liquidity with a transparent, audited cash management layer, while keeping issuance, custody and reconciliation squarely within a regulated framework,â he said.
The platform selected Polygon, an Ethereum scaling solution, for its high throughput and established DeFi ecosystem, leveraging it as the technical rail for the bank-grade tokenised MMF. Polygon Labs will provide technical support and ecosystem integration during the initial exclusivity period and remain the preferred venue for RYT expansion.
This development further strengthens Hong Kongâs position as a forward-thinking hub for compliant digital asset innovation, offering clear frameworks for tokenised securities and stablecoin alternatives amidst ongoing regulatory discussions in other jurisdictions like the US and Europe.
âRYT represents exactly the type of institutional-grade innovation weâre enabling on Polygon,â said Marc Boiron, CEO of Polygon Labs. He added that the token brings regulated, transparent yield opportunities to users while maintaining the composability and efficiency that makes DeFi powerful, calling it a âshining example of how Polygon is becoming the preferred platform for tokenized real-world assetsâ. The expanding tokenised money market fund sector, which reached an estimated $5.7billion since 2021, reflects a surging institutional interest in combining the stability of traditional instruments with the efficiency of blockchain.
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