KEY TAKEAWAYS
- AlloyX launches the Real Yield Token (RYT) on Polygon, enhancing access to institutional-grade yield through DeFi.
- RYT bridges regulated liquidity with programmable finance, optimizing yield via looping on Polygon’s efficient blockchain.
- Standard Chartered Bank provides custody and registrar services, ensuring compliance and transparency for institutional investors.
- Polygon’s role as a preferred blockchain for global payments is reinforced by its stability and low transaction costs.
Today, AlloyX, a leading stablecoin service provider in Asia, has launched a compliant tokenized money market fund, Real Yield Token (RYT), exclusively on Polygon.
RYT serves as a bridge between regulated liquidity and programmable finance. It allows users to access institutional-grade yield while benefiting from the efficiency of decentralized finance (DeFi). This launch aligns yield generation with risk oversight.
The introduction of RYT enhances Polygon’s role as a preferred blockchain for global payments and tokenization. Polygon’s long-term stability, low costs, and near-instant transaction finality make it a standout choice as financial markets increasingly adopt on-chain settlement.
Designed for capital efficiency, RYT enables users to maximize yield through a process known as looping. This involves supplying tokens as collateral, borrowing against them, and repeating the process. On Polygon, these loops incur minimal fees and benefit from high throughput, optimizing both yield and on-chain activity.
Standard Chartered Bank, based in Hong Kong, provides custody services and acts as registrar for the fund. The fund operates on daily cycles with T+1 settlement, and selected data is published on-chain to ensure transparency. Institutional investors receive the compliance and auditability they expect, combined with the speed and composability of DeFi.
During its exclusivity window, Polygon Labs is supporting AlloyX with DeFi integration, technical assistance, and growth initiatives. After this period, Polygon will continue to be AlloyX’s preferred platform for expansion.
AlloyX joins a growing list of institutions and governments building financial applications and payment platforms on Polygon. This list includes companies like Stripe, Franklin Templeton, Apollo, and BlackRock, all of which are reshaping markets through tokenization.
For more information, the announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
AlloyX has launched a tokenized money market fund, Real Yield Token (RYT), on Polygon, enhancing the blockchain’s role in global payments and tokenization.
A CFA Institute report highlights that tokenized money market funds are rapidly growing, with assets surging 80% year-to-date. This aligns with AlloyX’s launch on Polygon, which is set to capitalize on the increasing demand for digital financial instruments.
According to a Baker McKenzie report, tokenization in financial markets is driven by improved regulatory clarity and technological advancements. This supports the significance of AlloyX’s RYT as it aims to offer institutional-grade yield with the benefits of DeFi.
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