KuCoin partners with AlloyX to test RWA collateral program

In this post:

• KuCoin has partnered with AlloyX to launch a new real-world asset collateral initiative.
• The crypto exchange will allow the integration of the RYT token into its Off-Exchange Settlement system to offer users collateral opportunities.
• The structure will allow users to earn underlying yields while holding the token.

KuCoin partners with AlloyX to pilot a new RWA collateral mechanism, starting with the integration of the RYT token into its Off-Exchange Settlement system. The initiative enables token holders to apply for credit lines on KuCoin, combining yield generation with collateral utility.

RYT is backed by the ChinaAMC USD Digital Money Market Fund and issued by a licensed asset manager under Standard Chartered’s custody in Hong Kong. The company manages over $260 billion in assets, and Standard Chartered oversees custody, administration, and unit registration, reinforcing institutional compliance. 

KuCoin lists RTY among tokens eligible for collateral

ChinaAMC is the earliest asset management institution to establish operations in Hong Kong. It offers one of Asia’s tokenized USD funds for retail investors, with subscriptions and redemptions available in token form.

The collaboration will help KuCoin list RYT tokens among the assets eligible for credit collateral. Token holders will be able to use the assets to apply for credit within their platform accounts to support their trading activities. 

The structure will allow users to earn underlying yields while holding the token. Token holders will also get to configure money market fund tokens alongside other on-chain assets and unlock collateral-based asset utility.

“KuCoin has always been committed to bridging traditional finance and the crypto world through innovation. This collaboration with AlloyX to explore RWA tokens as collateral mechanisms exemplifies our dedication to providing users with secure and compliant solutions.”

–BC Wong, CEO of KuCoin.

Wong also acknowledged that the company is focused on maintaining trustworthiness and risk control. He believes the partnership not only elevates the firm’s innovation level but also delivers reliable asset appreciation opportunities to global users. He also maintained that the opportunities will help users manage digital assets more confidently in dynamic markets.

CEO and co-founder of AlloyX, Thomas Zhu, argued that the firm has always focused on how RWAs can deliver more authentic and sustainable economic functions on-chain. He believes that the cooperation with KuCoin will offer users more possibilities for digital asset utilization, but also provide the industry with opportunities for structural validation.

KuCoin said that although RWA adoption is still in its early stages, it sees growth in its role in institutional design, risk control, and asset construction across fintech. It expects the collaboration with Alloyx to contribute to shaping practical frameworks and future standards for RWA implementation.

KuCoin allows UBS uMINT collateral trading through DigiFT

The cryptocurrency exchange on Tuesday launched support for UBS uMINT tokens through DigiFT, which tokenizes real-world assets. The collaboration is meant to allow token holders through DigiFT to use their digital assets as collateral for their trading activities.

The money market instruments will be issued under UBS Tokenize, which is UBS’s in-house tokenization service. The crypto exchange said the initiative addresses the growing demand for high-grade on-chain income assets. It will also offer enhanced liquidity, risk reduction, and operational efficiency while maintaining regulatory compliance and security.