Autor: dot-traders

• AlloyX unveils tokenized money market fund RYT on Polygon for DeFi trading and yield looping.
• RYT holds bank-custodied assets via Standard Chartered, regulated and audit-compliant.
• Tokenized MMFs gain traction as institutions and retail bridge traditional finance with DeFi.

Tokenization infrastructure firm AlloyX has introduced a new tokenized money market fund on Polygon, reflecting the growing trend of bringing real-world assets (RWAs) to blockchain ecosystems.

The fund, dubbed the Real Yield Token (RYT), aims to merge traditional bank-custodied assets with decentralized finance (DeFi) strategies, offering investors both familiarity and blockchain-native utility.

RYT combines traditional MMF security with DeFi flexibility

RYT represents shares in a conventional money market fund, with the underlying assets held in custody by Standard Chartered Bank in Hong Kong.

The fund is fully regulated and subject to regular audits, giving investors confidence in its compliance and security.

Like other money market funds, RYT invests in short-term, low-risk instruments, including US Treasurys and commercial paper, ensuring capital preservation while generating modest yields.

The tokenized format, however, introduces new functionality.

RYT shares can be traded onchain and integrated into DeFi protocols, enabling users to employ their holdings as collateral.

Through a DeFi technique known as looping, investors can borrow against their RYT tokens and reinvest the proceeds to enhance yields — a feature not typically available in traditional money market products.

AlloyX chose Polygon for deployment, citing the network’s low fees, fast transaction speeds, and vibrant DeFi ecosystem.

Institutional interest in tokenized money market funds grows

AlloyX is entering a rapidly expanding market.

Large financial institutions have increasingly explored tokenized money market funds to combine the stability of cash-like assets with the efficiency and composability of blockchain.

Notable examples include BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which offers tokenized exposure to US dollar yields through Treasury bills and repurchase agreements.

Goldman Sachs and BNY Mellon have also announced plans for similar tokenized MMFs, although these generally do not include DeFi-native functionalities like looping or composability, which set AlloyX’s RYT apart.

According to a June report by Moody’s, tokenized short-term liquidity funds remain a “small but rapidly growing product,” with the market reaching an estimated $5.7 billion since 2021.

The trend underscores growing institutional interest in bridging traditional finance with digital markets while providing investors with onchain access to familiar, low-risk instruments.

Tokenized MMFs address cash management needs in DeFi

The rising adoption of tokenized money market funds is also linked to broader developments in the crypto ecosystem, such as the passage of the GENIUS Act in the United States and increased stablecoin usage.

These factors have heightened demand for onchain products that retain the liquidity and security of cash-like assets.

JPMorgan strategist Teresa Ho told Bloomberg that tokenized MMFs offer a practical alternative to posting cash or Treasurys in DeFi protocols.

“Instead of posting cash, or posting Treasurys, you can post money-market shares and not lose interest along the way. It speaks to the versatility of money funds,” she said, emphasizing the appeal of products like RYT for investors seeking both yield and utility.

AlloyX’s launch represents a notable milestone for tokenized finance, showcasing the potential for traditional instruments to coexist with decentralized protocols while offering innovative ways to generate yield.

As demand for real-world assets on blockchain grows, products like RYT may become a key bridge between conventional finance and DeFi, appealing to both institutional and retail investors seeking secure, liquid, and composable onchain assets.

The post AlloyX launches tokenized money market fund on Polygon amid growing RWA demand appeared first on CoinJournal.

• JPMorgan says Bitcoin undervalued vs gold, sets $165K year-end target.
• Bitcoin ETF inflows show retail investors driving the “debasement trade.”
• Rising gold prices make Bitcoin more attractive, says JPMorgan analysts.

Bitcoin could rally to $165,000 by the end of 2025, according to analysts at JPMorgan, who argue the cryptocurrency remains undervalued relative to gold on a volatility-adjusted basis.

The projection comes as bitcoin hovers near $119,000, bolstered by growing investor demand for alternative stores of value amid global economic and political uncertainty.

Bitcoin valuation relative to gold

In a report released Wednesday, JPMorgan analysts led by Nikolaos Panigirtzoglou said the bitcoin-to-gold volatility ratio has fallen below 2.0, meaning bitcoin now consumes about 1.85 times more risk capital than gold.

On that basis, they estimate bitcoin’s $2.3 trillion market capitalization would need to rise by roughly 42% — translating into a price of about $165,000 — to align with the $6 trillion invested privately in gold through exchange-traded funds (ETFs), bars, and coins.

The analysis marks a notable shift compared with the end of 2024, when JPMorgan calculated bitcoin was $36,000 overvalued relative to gold. Now, they suggest it is undervalued by approximately $46,000.

“This mechanical exercise thus could imply significant upside for bitcoin,” the analysts wrote.

The latest outlook builds on an earlier forecast from August, when the bank projected a year-end bitcoin price of $126,000.

Since then, rising gold prices have improved bitcoin’s relative attractiveness, prompting JPMorgan to revise its implied target upward.

The rise of the “debasement trade”

JPMorgan’s analysts framed the bullish scenario within what they call the “debasement trade,” a growing movement among investors seeking protection against inflation, government deficits, geopolitical risks, and declining trust in fiat currencies.

Both bitcoin and gold have benefitted from this trend, with inflows into ETFs tracking the two assets rising significantly over the past year.

According to the report, retail investors have been the driving force behind the surge, particularly in bitcoin ETFs. Inflows into spot bitcoin funds accelerated in the first half of 2025, before easing somewhat in August. At the same time, gold ETFs began attracting stronger demand, narrowing the gap in cumulative inflows between the two asset classes.

The analysts noted that while institutional investors have participated through CME futures contracts, positioning in futures has been weaker compared with ETF inflows, highlighting the retail tilt of the debasement trade.

A bullish consensus emerging

Bitcoin’s potential upside, as highlighted by JPMorgan, adds to a broader wave of bullish calls heading into the final quarter of the year.

Several other analysts and firms have floated forecasts of bitcoin reaching $200,000, underscoring heightened optimism around the asset.

At present, bitcoin is trading near $119,000, leaving room for significant gains if JPMorgan’s $165,000 target materializes.

The upward revision reflects both relative valuation dynamics with gold and the broader macro environment driving demand for non-traditional stores of value.

Whether bitcoin achieves JPMorgan’s implied valuation will depend on the persistence of investor appetite for the debasement trade and its ability to compete with gold for capital allocation.

For now, the report highlights bitcoin’s evolving role alongside precious metals as a key hedge against economic and political risks.

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• USDT and USDC drop to 83.6% market share as rivals like USDe, PYUSD, and bank coins gain ground.
• Ethena’s USDe surges to $14.7B, leading new yield-bearing stablecoins reshaping the market.
• ING, UniCredit, JPMorgan, and Citi push into stablecoins, challenging Tether and Circle’s dominance.

Tether’s USDt (USDT) and Circle’s USDC (USDC), the two largest stablecoins by market capitalization, are showing signs of losing their long-standing dominance in the digital asset sector.

Despite both tokens growing in absolute market cap, their combined market share has fallen by more than 5% over the past year, suggesting a shifting landscape for stablecoins.

According to data from DefiLlama and CoinGecko, USDT and USDC’s share of the stablecoin market dropped from 89% a year ago to 83.6% as of October 2025.

Industry analysts say this marks the beginning of a new phase in which alternative issuers — including startups and banks — are positioning themselves to challenge the duopoly.

USDT and USDC’s market share decline

The peak of USDT and USDC’s combined dominance came in March 2024, when the stablecoin market was valued at $140 billion.

At that time, Tether held approximately $99 billion in circulation, and Circle’s USDC accounted for $29 billion, together representing 91.6% of the market.

Since then, the dominance has steadily declined.

By October 2024, USDT and USDC represented 89% of the sector, and at present, they hold just 83.6%.

That reflects a 5.4% drop over the past year and a 3.4% decline since January.

Nic Carter, a partner at Castle Island Ventures, highlighted the trend in a post on X titled “The stablecoin duopoly is ending.”

He attributed the decline to three primary factors: competition from intermediaries, an intensifying race to attract users with yield-bearing stablecoins, and shifting regulatory dynamics following the introduction of the US GENIUS Act.

New Stablecoin challengers emerge

Carter noted that several new players have gained traction in the past year, reshaping the stablecoin landscape.

Among them are Sky’s USDS (USDS), Ethena’s USDe (USDE), PayPal’s PYUSD (PYUSD), and World Liberty’s USD1 (USD1).

Ethena’s USDe has been particularly notable, growing to a $14.7 billion supply by offering holders yields derived from crypto basis trades. Carter described USDe as “the biggest success story of the year.”

Other issuers, including Ondo with USDY, Paxos with USDG, and Agora with AUSD, are also entering the market with similar yield-bearing structures.

While regulatory scrutiny has intensified under the GENIUS Act, particularly around yield products, Carter believes the trend of offering returns to stablecoin holders will continue.

Meanwhile, Circle is exploring ways to introduce yield features for USDC in partnership with Coinbase, signaling that incumbent issuers may adapt to the competitive pressure.

Banks enter the Stablecoin arena

Beyond fintech startups, traditional banks and financial institutions are also moving into the sector.

Carter suggested that bank-led stablecoin consortia have the strongest potential to rival Tether, as no single bank has the reach to scale a stablecoin alone.

Recent developments support this prediction.

In September, Dutch bank ING announced a joint venture with Italy’s UniCredit and seven additional European lenders to build a euro-denominated stablecoin.

The project, designed to comply with Europe’s Markets in Crypto-Assets (MiCA) regulation, is expected to launch in the second half of 2026.

In the US, a stablecoin initiative involving JPMorgan and Citigroup has also been reported, with Carter predicting that such collaborations could fundamentally alter the balance of power in the market.

As competition accelerates, USDT and USDC may retain their leading roles but face an increasingly fragmented environment.

The shift marks a critical phase for the industry, where regulatory oversight, yield innovation, and institutional adoption are set to reshape the global stablecoin market.

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