Global cryptocurrency exchange KuCoin has announced a strategic partnership with digital financial infrastructure provider AlloyX to explore the integration of Real-World Asset (RWA) tokens into its credit line collateral framework.

The initiative will begin with the inclusion of the RYT token in KuCoin’s Off-Exchange Settlement (OES) system, with mechanisms to be refined based on market feedback.

The collaboration marks the debut of the RYT token, issued by a traditional licensed asset management company, into KuCoin’s collateral ecosystem.

Backed by the ChinaAMC USD Digital Money Market Fund, the RYT token is a tokenized product from China Asset Management (Hong Kong) Limited — a wholly-owned subsidiary of China Asset Management Co., Ltd.

As one of the earliest Chinese asset management firms to establish a presence in Hong Kong, ChinaAMC offers one of Asia’s first tokenized USD funds for retail investors.

The product allows both subscriptions and redemptions in token form, creating a bridge between traditional fund structures and blockchain-based accessibility.

Through this partnership, KuCoin will list RYT as an eligible asset for credit collateral, enabling token holders to apply for credit lines directly through their platform accounts to support trading activities.

This structure allows users to earn yields from the underlying fund while simultaneously using the token as collateral, combining income generation with liquidity access.

The infrastructure supporting RYT is designed with strict compliance measures.

Fund custody, administration, and unit registration are managed by Standard Chartered Bank in Hong Kong, ensuring institutional-grade safeguards under a traditional financial regulatory framework.

KuCoin CEO BC Wong emphasized the exchange’s focus on bridging traditional finance with the digital asset sector.

“This collaboration with AlloyX to explore RWA tokens as collateral mechanisms exemplifies our dedication to providing users with secure and compliant solutions,” Wong said.

“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 highlighted the broader industry implications, noting that RWAs can deliver 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,” Zhu stated.

While adoption of RWAs remains in its early stages, industry observers see their potential role in institutional design, risk control, and asset construction as increasingly significant.

The KuCoin-AlloyX initiative represents both a product-level pilot and a possible blueprint for future frameworks in the space.

By combining traditional fund structures with blockchain-based collateral systems, the collaboration may accelerate the development of standards for compliant, yield-bearing digital assets.

KuCoin has indicated it will continue to pursue similar exploratory partnerships to bring more innovative value to its global user base.

If successful, the integration of RWA tokens like RYT into trading collateral mechanisms could offer cryptocurrency users more secure, diversified, and income-generating ways to manage their portfolios while enhancing overall market stability.

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