AlloyX, a stablecoin infrastructure firm headquartered in Hong Kong, has unveiled its newest venture, the RYT tokenized money market fund. This innovative financial product is hosted on the Polygon network—a leading Ethereum scaling solution—and comes with custody services provided by Standard Chartered Bank, enhancing its appeal and reliability.
Distinct from conventional tokenized money market funds that often offer merely passive investment opportunities, RYT incorporates decentralized finance (DeFi) mechanisms to create yield-driven strategies. This unique blend enables RYT to enhance returns for investors while adhering to established compliance standards recognized by auditors and regulatory bodies, according to a press release issued by AlloyX.
The stablecoin sector has witnessed remarkable growth in recent years, now valued at approximately $280 billion, as reported by DeFiLlama. Dominating this landscape are Tether’s USDT and Circle’s USDC, which together command over 80% of the market share.
In a notable development, AlloyX was acquired by Solowin Holdings (SWIN), a publicly traded investment company in Hong Kong, for $350 million last month. This acquisition aligns with AlloyX’s strategy to expand into emerging markets, further solidifying its position in the rapidly evolving financial technology space.
A key feature of the RYT fund is its T+1 settlement cycles, allowing for the settlement of securities transactions one business day post-trade. This structure aims to provide investors with enhanced transparency, as selected fund information will be made available on-chain, all while ensuring compliance with regulatory frameworks.
Supporting AlloyX in this rollout, Polygon Labs is contributing technical integration and fostering ecosystem development. During its initial launch phase, the RYT fund will be exclusive to the Polygon network, with plans to expand to additional platforms in the future.
“By leveraging Polygon’s infrastructure to maximize utility and integrating bank-grade tokenized money market fund rails for the underlying cash component, RYT aims to connect DeFi liquidity with a transparent and audited cash management system,” stated Dr. Thomas Zhu, Co-Founder and CEO of AlloyX Group. He emphasized the importance of maintaining issuance, custody, and reconciliation under regulatory oversight, which is critical for fostering investor confidence.
The launch of RYT marks a significant milestone in the evolution of tokenized finance, presenting opportunities for investors seeking yield in a compliant manner. As the ecosystem continues to develop, the collaboration between AlloyX, Polygon, and Standard Chartered may serve as a blueprint for future projects aiming to merge traditional finance with the innovative potential of decentralized technologies.
