KuCoin Partners with AlloyX to Integrate RWA Tokens into Credit Collateral System

• The purpose of this agreement is to investigate the possibility of incorporating Real-World Asset (RWA) tokens into the credit line collateral mechanisms of KuCoin.
• As a result of this partnership, KuCoin will include RYT on its list of assets that are suitable to serve as collateral for lending.
• The endeavor that KuCoin and AlloyX are working on is not only a pilot project at the product level, but it also has the potential to contribute to the development of realistic frameworks and future standards.

A cooperation between the global cryptocurrency exchange KuCoin and the digital financial infrastructure provider AlloyX has been announced. The purpose of this agreement is to investigate the possibility of incorporating Real-World Asset (RWA) tokens into the credit line collateral mechanisms of KuCoin. The partnership starts with the incorporation of the RYT token, which was issued by a conventional licensed asset management firm, into KuCoin’s Off-Exchange Settlement (OES) system, which is used for credit management. On the basis of the comments received from the market, the mechanism will be gradually optimized.

The RYT token is backed by the “ChinaAMC USD Digital Money Market Fund,” which is a tokenized product that was issued by China Asset Management (Hong Kong) Limited, which is a wholly-owned subsidiary of China Asset Management Co., Ltd. In addition to being one of the first Chinese asset management organizations to launch operations in Hong Kong, the company also provides one of the first tokenized USD funds for retail investors in Asia. Subscriptions and redemptions are also accessible in token form.

As a result of this partnership, KuCoin will include RYT on its list of assets that are suitable to serve as collateral for lending. For the purpose of facilitating trading activity, token holders will have the ability to submit applications for credit lines inside their platform accounts. Users have the ability to earn underlying yields while holding the token, setup money market fund tokens alongside other on-chain assets, and unleash collateral-based asset usefulness thanks to the structure.

Compliance was taken into consideration throughout the development of the asset chain that underpins RYT. Standard Chartered Bank in Hong Kong is responsible for the management of fund custody, administration, and unit registration. This provides institutional-level protections within the context of a conventional financial framework.

KuCoin CEO BC Wong stated:

“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. We emphasize trustworthiness and risk control—this partnership not only elevates the platform’s innovation level but also delivers reliable asset appreciation opportunities to global users, helping them manage digital assets more confidently in dynamic markets.”

AlloyX Co-Founder and CEO Thomas Zhu remarked:

“Our focus has always been on how RWA, as an asset form, can deliver more authentic and sustainable economic functions on-chain. This cooperation with KuCoin is a pragmatic attempt centered on ‘collateral mechanisms and scenario building,’ not only offering users more possibilities for asset utilization but also providing the industry with opportunities for structural validation.”

The role that RWA plays in institutional design, risk management, and asset creation is gaining momentum throughout the fintech industry, despite the fact that its adoption is still in its younger phases. The endeavor that KuCoin and AlloyX are working on is not only a pilot project at the product level, but it also has the potential to contribute to the development of realistic frameworks and future standards for the implementation of RWA.

KuCoin has announced that it will continue to expand experimental relationships of a similar kind in order to provide users all around the globe with more novel value experiences.

KuCoin is a prominent global cryptocurrency platform that was established in 2017 and continues to serve over 41 million users across more than 200 nations and regions internationally. In addition to providing access to more than one thousand digital assets and solutions, KuCoin was developed using cutting-edge blockchain technology. These include Web3 wallet, spot and futures trading, institutional services, and payment processing. In addition to being a “Top 50 Global Unicorn” by Hurun and a “Best Crypto Apps & Exchanges” by Forbes, KuCoin is also certified to the ISO 27001:2022 standard and is dedicated to security, compliance, and innovation.

A technological firm that specializes in worldwide stablecoin payments and asset tokenization, AlloyX Limited is a key participant in the cryptocurrency industry. AlloyX is dedicated to connecting conventional banking payment systems with blockchain services. Along with this commitment, the company offers stablecoin payment services that are both safe and efficient, as well as asset tokenization solutions. The organization’s objective is to establish itself as the most prominent supplier of RWA tokenization technology and stablecoin payments infrastructure in Asia. In addition to providing services for stablecoin wallets that are incorporated inside its platform, AlloyX also incorporates a variety of blockchain and payment solutions into its wallet and payment intermediary platform. Additionally, the AlloyX platform offers comprehensive solutions for the storage of stablecoins, payments, settlement, investment, foreign exchange, and asset tokenization. These solutions are designed to encourage the widespread adoption and application of technologies related to stablecoin payments and tokenization.