The partnership with DigiFT is a step forward for KuCoin’s goal of advancing the RWA tokenization market and allowing institutional customers access to regulated tokenized investment funds.
Leading centralized crypto exchange KuCoin announced the partnership with DigiFT, a leading licensed platform for tokenized real-world assets (RWAs), to support the UBS uMINT token. uMINT is the first tokenized investment fund launched by UBS Asset Management and distributed through DigiFT, allowing institutional clients to invest in UBS Asset Management’s risk-managed financial solutions.
Notwithstanding, the partnership aims to unlock the trillions locked in illiquid assets in the traditional finance market to streamline trading and add liquidity. BC Wong, CEO of KuCoin explains the partnership will revolutionise the tokenized RWA market, “securing investments for the global market”.
“This partnership with DigiFT to support the UBS uMINT token highlights a significant step forward in exploring the viability and adoption of secure investments for a broader audience,” BC Wong further stated. “It empowers institutions to unlock tokenized traditional assets for seamless global trading and solidifies KuCoin’s leadership in converging traditional and digital finance.”
As part of the partnership, KuCoin will support the uMINT token, allowing institutional tokenholders through DigiFT to utilize their tokenized investment funds as off-exchange collateral. This will enable efficient trading on the tokenized assets, enhance liquidity and safeguard collateral by linking the TradFi market with new digital assets on a robust blockchain infrastructure. In addition, investors can also access an array of digital assets and other investments offered on the exchange.
“KuCoin remains committed to innovation alongside unwavering compliance and security,” Wong added.
By holding the uMINT token, institutional clients can access UBS Asset Management’s institutional-grade cash management solutions. These solutions are backed by high-quality money market instruments and follow a dynamic risk-managed framework. The tokenized uMINT was offered through DigiFT, a platform that provides investors access to tokenized RWAs.
The platform supports subscription and redemption of the tokens via stablecoins and fiat currency in a non-custodial manner. The partnership with KuCoin Exchange will allow investors access to a higher liquidity pool and easy redemption of the tokenized RWA tokens. DigiFT’s goal is to advance the RWA tokenization market, developing the next iteration of compliant institutional-grade capital markets infrastructure for Web3.
Speaking on the partnership, Henry Zhang, CEO of DigiFT, stated:
“The integration of the UBS uMINT token, which will enable tokenholders to use their funds as collateral via KuCoin’s mirroring program, exemplifies our focus on enhancing capital efficiency across digital asset markets through tokenized RWAs. Together with our partners, we are reshaping the innovation contours of institutional digital asset infrastructure.”
Nearly $14 billion is currently locked on on-chain RWA tokenization platforms. With RWA increasingly touted as the next phase of blockchain and institutional grade infrastructure being built, the market could be in a bullish phase. KuCoin aims to lead this charge with such incentives. Expanding the use of tokenized RWAs in real-world exchanges and trading environments will initroduce additional utility for cryptocurrencies, according to the KuCoin press release.
Additionally, KuCoin targets more partnerships in the RWA tokenization market, as demand for
high-grade on-chain income assets grows. This is to see broader adoption of RWAs, foster a more interconnected financial ecosystem, and provide institutional clients with flexible trading solutions to optimize capital efficiency and boost returns.
Investors will be able to trade RWA Ltokens with stablecoin equivalents without transferring ownership, enabling sophisticated trading on digital assets while preserving yields and control through a third-party regulated custodian. This will all be done on highly secure and regulatory-compliant blockchain infrastructure – a new standard for the RWA tokenization economy.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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