AlloyX Launches Tokenized Yield Fund With Standard Chartered Custody

BlockStreet's Hedy Wang on Bridging DeFi and TradFi

A growing number of firms are exploring how to blend decentralized finance (DeFi) with traditional financial systems, and BlockStreet is among the most vocal advocates. Hedy Wang, a senior executive at the firm, has emphasized the need for structured frameworks that allow tokenized assets to operate within regulated environments. This effort is gaining traction as stablecoin markets expand and institutional players seek to leverage blockchain technology for yield generation and liquidity.

Recent developments suggest that the integration of DeFi and traditional finance is no longer a distant possibility but an active pursuit. Hong Kong-based AlloyX has already launched a tokenized money market fund, RYT, on Polygon, with custody provided by Standard Chartered Bank.

This product uses DeFi strategies to enhance yields while remaining within a compliant structure. Similarly, WisdomTree has introduced its first tokenized fund, bringing options income strategies onto the blockchain according to reports.

In parallel, traditional financial institutions are also rethinking their approaches to digital assets. Bajaj Finserv, a leading Indian financial services group, has laid out a five-year roadmap that includes expanding into pensions and wealth management, with ambitions to triple revenue by FY30. Chairman Sanjiv Bajaj highlighted the firm's pivot to tech-driven businesses such as health-tech and digital marketplaces, underscoring the industry's shift toward innovation. The firm also plans to list its insurance arms in the next 4-5 years, signaling a long-term commitment to capitalizing on regulatory and market shifts.

The Convergence of Tokenization and Institutional Finance

The RYT fund by AlloyX represents one of the most concrete examples of how DeFi can coexist with traditional finance. By leveraging Polygon's scalable infrastructure and Standard Chartered's custody services, the product is able to offer stablecoin holders a regulated means of generating yield. This is significant because it demonstrates how tokenization can retain the efficiency and transparency of blockchain while meeting the requirements of financial regulators.

AlloyX's move comes at a time when the stablecoin market is projected to grow exponentially, with Citi forecasting a potential $4 trillion market size by 2030. The firm's recent acquisition by Solowin Holdings further highlights the increasing interest in digital asset infrastructure, particularly in emerging markets. With T+1 settlement cycles and on-chain transparency, RYT aims to attract both institutional and retail investors who are looking for alternatives to traditional fixed-income products.

Strategic Mergers and Acquisitions in Wealth Management

Meanwhile, traditional wealth management firms are also aligning to strengthen their offerings and expand their client bases. Motley Fool Wealth Management announced its planned acquisition by Apollon Wealth Management, a move expected to close in Q1 2026. The partnership is designed to enhance client access to financial planning tools and investment vehicles, leveraging Apollon's open-architecture platforms. This acquisition reflects a broader trend in the wealth management sector, where firms are consolidating to offer more comprehensive and scalable services.

Similar moves are being made by independent advisory firms. Sanders Wealth Management, a South Carolina-based firm with $220 million in assets under management, has joined Osaic, a national wealth management provider. The transition aims to offer enhanced technology and expanded investment solutions, enabling the firm to better serve its clients. These strategic shifts highlight how wealth management is evolving to meet the demands of a digital-first, client-centric financial landscape.

What This Means for Investors

For investors, the convergence of DeFi and TradFi presents both opportunities and risks. Tokenized funds and stablecoin-based products offer new avenues for yield generation and liquidity, but they also introduce complexities in terms of regulation and volatility. As firms like AlloyX, Motley Fool, and Bajaj Finserv continue to innovate, investors must remain vigilant about the regulatory environments in which these products operate.

In the coming years, investors should also watch for continued consolidation in the wealth management sector. As larger platforms integrate independent advisory firms, the competition for client assets is likely to intensify. This could lead to greater innovation in financial products and more personalized services, but it will also require investors to carefully evaluate the long-term stability and transparency of their wealth management providers.