PROVIDENCIALES, Turks and Caicos Islands, Aug. 12, 2025 /PRNewswire/ — The globally leading cryptocurrency exchange KuCoin today announced a collaborative exploration with the digital financial infrastructure platform AlloyX to introduce Real-World Asset (RWA) tokens into the exchange’s collateral mechanisms. This partnership will pilot the integration of RWA token RYT, issued by a traditional licensed asset management company, into KuCoin’s Off-Exchange Settlement (OES) system for credit line management. The mechanisms will be gradually optimized and expanded based on market feedback.
This collaboration incorporates tokenized products from the “ChinaAMC USD Digital Money Market Fund,” issued by a traditional large-scale asset management institution — China Asset Management (Hong Kong) Limited — into the exchange’s credit system. It represents a new attempt to drive ongoing innovation in RWA application scenarios, further penetrating and establishing connections between Web2 and Web3 assets.
Crossover Initiative: Tokens Backed by Traditional Fund Assets Enter the Exchange Credit System
China Asset Management (Hong Kong) Limited is a wholly-owned subsidiary of China Asset Management Co., Ltd., and is one of the earliest Chinese asset management institutions in Hong Kong to conduct overseas business. It is the issuer of the underlying asset for the RYT token — the “ChinaAMC USD Digital Money Market Fund.” This fund is one of Asia’s first tokenized USD funds targeted at retail investors, with fund units available for subscription and redemption in token form.
Under this partnership mechanism, KuCoin will include RYT in its credit collateral list. Users holding the token can apply for credit lines in their platform accounts to support related trading operations. Backed by secure mechanisms and authentic assets, this innovative attempt provides a new use case for RWA tokens: users can earn underlying yields through holding, allowing investors to configure money market fund tokens as conveniently as other on-chain assets and increase asset allocation diversity, while also activating asset leverage value through collateralization.
Notably, the underlying asset structure of RYT has undergone rigorous compliance design, with functions such as fund custodian banking, fund administration, and unit registration handled by Standard Chartered Bank in Hong Kong, offering a trustworthy asset chain under a traditional 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.”
Long-Term Significance: Activating Liquidity and Guiding Market Consensus
Although RWA is still in its early development stage, its potential in institutional design, risk control, and asset-side construction is increasingly recognized by financial technology institutions. In this collaboration, AlloyX and KuCoin are linking up around RWA collateral mechanisms — not just a product-level integration test but potentially a vanguard for subsequent market standards and practical paths.
From an industry perspective, incorporating traditional asset tokens as compliant collateral into mainstream exchange credit systems is expected to enhance the depth of RWA usage and liquidity, while also providing observable models for more asset issuers, platform operators, and regulators.
In this context, KuCoin stated that it will continue to deepen exploratory collaborations with various parties to bring more innovative value to global users.
About KuCoin
Founded in 2017, KuCoin is a leading global cryptocurrency platform serving over 41 million users across 200+ countries and regions. Built on cutting-edge blockchain technology, KuCoin offers access to 1,000+ digital assets and solutions including Web3 wallet, Spot and Futures trading, institutional services, and payments. Recognized by Forbes as one of the “Best Crypto Apps & Exchanges” and a “Top 50 Global Unicorn” by Hurun, KuCoin is ISO 27001:2022 certified and committed to security, compliance, and innovation under the leadership of CEO BC Wong. Learn more: https://www.kucoin.com/
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