KuCoin has partnered with digital finance platform AlloyX to pilot the use of Real World Asset (RWA) tokens as collateral on its exchange, in a move designed to bring tokenized traditional assets deeper into the DeFi ecosystem.
The pilot will integrate the RYT token, backed by the ChinaAMC USD Digital Money Market Fund, into KuCoin’s Off Exchange Settlement credit line system. Issued by China Asset Management (Hong Kong) Limited, RYT enables on chain subscription and redemption of fund units, making it one of Asia’s first tokenized USD money market funds available to retail investors.
???? KuCoin x @AlloyX_Limited, advancing RWA innovation and bridging TradFi with crypto.
We are exploring how Real-World Asset tokens like RYT can be used as collateral in KuCoin’s Off-Exchange Settlement system, backed by tokenized products from ChinaAMC USD Digital Money Market… pic.twitter.com/EgXYZLMahd
— KuCoin (@kucoincom) August 13, 2025
Through the initiative, KuCoin users who hold RYT can pledge it as collateral for trading credit lines while continuing to earn yields from the underlying assets. This dual functionality is intended to expand RWA liquidity and give traders more leverage options beyond crypto native collateral.
The token’s structure is built on strong compliance and security measures, with Standard Chartered Bank in Hong Kong overseeing fund custody, administration, and unit registration to ensure it remains tied to a regulated financial framework.
KuCoin CEO BC Wong described the project as part of the exchange’s mission to connect traditional finance with blockchain innovation. AlloyX CEO Thomas Zhu called it a practical step toward making RWA collateralization a standard feature in DeFi.
KuCoin believes the integration of regulated, asset-backed tokens into exchange credit systems could drive greater institutional adoption, boost on-chain liquidity, and pave the way for broader regulatory acceptance. The exchange intends to expand its RWA offerings as part of its growth strategy in crypto credit and collateral services.
In another development, KuCoin recently became the first global cryptocurrency exchange to support UBS uMINT, a tokenized money market investment fund launched by UBS Asset Management and distributed through licensed platform DigiFT. The arrangement allows institutional tokenholders to use UBS uMINT as off exchange collateral for digital asset trading on KuCoin. Through DigiFT’s infrastructure, clients can deploy tokenized traditional assets within the exchange environment.
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