Polygon partners with AlloyX and Standard Chartered on tokenized fund
The collaboration brings regulated money market fund exposure to Polygon, with custody provided by Standard Chartered
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Polygon has become the launch venue for a new tokenized money market fund (MMF) developed by AlloyX, with Standard Chartered Bank taking on the roles of custodian and registrar.
Announced Thursday, the partnership is designed to offer institutional investors a bridge between traditional regulated fund products and blockchain-based financial infrastructure.
At the center of the rollout is the AlloyX Real Yield Token (RYT), which represents exposure to the China Asset Management Select USD Money Market Fund. Unlike conventional shares, these tokens are issued and transacted on Polygon’s blockchain, while Standard Chartered ensures off-chain asset custody and recordkeeping.
AlloyX has integrated Chainlink’s Proof of Reserve and NAVLink to provide real-time transparency into the assets backing the token, aiming to address a common institutional concern about on-chain financial products.
AlloyX was acquired earlier this year by Hong Kong’s Solowin Holdings for $350 million, a move that reinforced its positioning as a stablecoin and tokenization provider for the Asia-Pacific market. With RYT, the company is adding an additional layer of decentralized finance mechanics, such as looping strategies on Polygon, to enhance liquidity and yield.
The project reflects a broader push toward real-world asset (RWA) tokenization, which has attracted both startups and established asset managers. Franklin Templeton and Ondo Finance, among others, have previously launched tokenized MMF structures.
AlloyX’s decision to work with Standard Chartered signals an effort to reassure institutional clients on issues of custody, compliance, and oversight, while Polygon’s low-cost settlement network provides scalability for fund transactions.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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