KuCoin and AlloyX Collaborate to Pilot RWA Token Collateral Integration, Expanding Real-World Asset Use Cases in Crypto
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KuCoin, a global cryptocurrency exchange, has announced a collaboration with digital financial infrastructure provider AlloyX to explore the integration of Real-World Asset (RWA) tokens into its credit line collateral mechanisms. The initiative will begin with the inclusion of the RYT token—backed by a licensed traditional asset management company—into KuCoin’s Off-Exchange Settlement (OES) system. The integration will be phased in and adjusted based on market feedback.
The partnership introduces tokenized units from the "ChinaAMC USD Digital Money Market Fund," issued by China Asset Management (Hong Kong) Limited, into KuCoin’s credit system. The effort marks an early attempt to bridge Web2 and Web3 assets by incorporating traditional fund-backed tokens into an exchange credit model.
Introducing Collateral Use for Regulated RWA Tokens
China Asset Management (Hong Kong) Limited, a subsidiary of China Asset Management Co., Ltd., is among the first Chinese asset managers to operate overseas. The company issues the underlying assets for RYT, a tokenized representation of the "ChinaAMC USD Digital Money Market Fund." This fund is one of Asia’s first tokenized USD funds aimed at retail investors, with fund units that can be subscribed to and redeemed on-chain.
Under the new mechanism, KuCoin users holding RYT will be able to apply for credit lines using the token as collateral. This approach combines secure collateralization with yield-generating assets, enabling users to treat RWA tokens similarly to other on-chain assets. In doing so, the exchange aims to diversify asset allocation and unlock leverage utility within compliant parameters.
The RYT token’s asset structure has undergone compliance design, with Standard Chartered Bank in Hong Kong serving as custodian, administrator, and registrar—reflecting a traditional financial framework adapted to on-chain environments.
Statements from Leadership
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.”
Shaping RWA Adoption Through Exchange Infrastructure
The partnership reflects a broader industry trend toward recognizing the utility of tokenized traditional assets. By integrating a fund-backed token into an exchange’s credit system, KuCoin and AlloyX are laying the groundwork for future structural models, potentially influencing standards for asset issuers, platforms, and regulators.
As institutional interest in RWA continues to grow, KuCoin has signaled that it will pursue additional collaborations to advance the application and liquidity of RWA assets on-chain.
.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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