KuCoin is taking a step toward bringing traditional finance and crypto closer together. The global exchange announced a partnership with digital financial infrastructure provider AlloyX to pilot the use of Real-World Asset (RWA) tokens as collateral within its credit systems, starting with the RYT token, a tokenized money-market product tied to a regulated fund.
The pilot will introduce RYT into KuCoin’s Off-Exchange Settlement (OES) credit-management framework, allowing holders of the token to apply for credit lines on the platform. KuCoin says the mechanism will be rolled out progressively and tweaked according to market feedback, with the goal of combining yield generation and on-chain utility while maintaining institutional-grade safeguards.
KuCoin Moves into RWAs
RYT itself is a tokenized representation of units in the ChinaAMC USD Digital Money Market Fund, issued by China Asset Management (Hong Kong) Limited. a subsidiary of China Asset Management Co., Ltd. The fund is aimed at retail investors and is notable for offering subscriptions and redemptions in token form. It offers a bridge between traditional fund structures and on-chain accessibility. According to the project’s documentation, the token is designed to let holders earn the underlying fund yield while enabling familiar DeFi composability.
Security and compliance were core considerations in the collaboration. KuCoin and AlloyX emphasize that the RYT’s asset chain was built with compliance in mind: fund custody, administration and unit registration are handled by Standard Chartered Bank in Hong Kong, which the partners point to as an institutional safeguard layered underneath the tokenized asset. That custodial relationship is central to the pitch that regulated, real-world assets can safely be used as exchange collateral.
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.”
For users, the most tangible benefit is flexibility: RYT holders on KuCoin will be able to keep earning the money-market yield while using those tokens to unlock credit lines and trade, effectively enabling the token to serve dual roles as both yield-bearing asset and collateral. KuCoin positions this as part of a broader effort to let investors configure money-market tokens alongside other on-chain assets, increasing allocation diversity and unlocking leverage possibilities within a regulated framework.
AlloyX, which is a payments and tokenization infrastructure provider aiming to fuse traditional banking rails with blockchain services, brings the tokenization plumbing and experience in stablecoin payments to the collaboration. The company has been active in tokenizing yield products and building tooling to help money-market funds operate on-chain, and the KuCoin pilot represents a concrete application of that technology inside an exchange environment.
RWA adoption is still nascent, but interest is rising because tokenized assets can deliver predictable yields, improved liquidity and new collateral options for DeFi and centralized venues alike. KuCoin and AlloyX frame this pilot not only as a product experiment but as a potential contribution to practical frameworks and standards for future RWA deployments, a testing ground that could influence how exchanges and platforms safely incorporate regulated tokenized assets.
KuCoin, founded in 2017 and serving tens of millions of users globally, said it will continue exploring similar collaborations to bring more innovative value to users worldwide. AlloyX, meanwhile, has been building tokenization and payments infrastructure aimed at promoting broader stablecoin adoption and on-chain representation of traditional financial instruments. Together, the firms say they hope the pilot will show how regulated, yield-bearing tokens can be used as useful and secure collateral inside mainstream crypto services.
