KuCoin & AlloyX Partner on RWA Collateral
KuCoin and AlloyX Join Forces
Global cryptocurrency exchange KuCoin has announced a strategic collaboration with AlloyX, a digital financial infrastructure company, to explore new ways of integrating Real-World Asset (RWA) tokens into the exchange’s collateral mechanisms.
The pilot phase will incorporate the RYT token, issued by a licensed traditional asset management company, into KuCoin’s Off-Exchange Settlement (OES) credit line management system. The design will be refined and expanded gradually, based on market feedback and performance metrics.
This partnership also integrates tokenized products from the ChinaAMC USD Digital Money Market Fund — issued by China Asset Management (Hong Kong) Limited — into KuCoin’s credit system. This represents a major step toward blending Web2 financial instruments with Web3 blockchain-based systems.
Crossover Initiative: Linking Traditional Fund Assets To Crypto Collateral
China Asset Management (Hong Kong) Limited, a wholly-owned subsidiary of China Asset Management Co., Ltd., is one of the earliest Chinese asset managers in Hong Kong to operate overseas. It is the issuer of the underlying assets for the RYT token, which represents units in the ChinaAMC USD Digital Money Market Fund.
This fund is among the first tokenized USD-denominated funds in Asia designed for retail investors. Fund units are available for both subscription and redemption in token form, making it easy for users to transact on-chain.
Under the partnership framework, KuCoin will officially add RYT to its credit collateral list. This means that users holding RYT can apply for credit lines within their KuCoin accounts to support trading operations. Beyond simply holding the token, investors can earn yields from the underlying money market fund while also using it as leverageable collateral.
The RYT token’s asset structure has been designed with rigorous compliance standards. Standard Chartered Bank Hong Kong handles fund custody, administration, and unit registration, ensuring a trusted and transparent asset chain under a traditional financial governance model.
Executive Statements
KuCoin CEO BC Wong commented:
“KuCoin is committed to bridging traditional finance and the cryptocurrency world through innovation. This collaboration with AlloyX on RWA token collateralization reflects our focus on trustworthiness, compliance, and providing users with reliable tools for asset growth and protection.”
AlloyX Co-Founder and CEO Thomas Zhu added:
“Our focus is on building RWA into a viable on-chain asset class that can deliver real and sustainable economic functions. This cooperation is about developing collateral mechanisms and practical usage scenarios that enhance asset utility for users and provide structural validation for the industry.”
Long-Term Significance: Unlocking Liquidity And Market Consensus
While the RWA sector is still in its early growth phase, financial technology firms increasingly recognize its potential in risk management, institutional design, and asset structuring.
The KuCoin–AlloyX initiative is not merely a product integration test but could serve as a model for future market standards. By introducing compliant, traditionally-backed asset tokens into mainstream exchange collateral systems, the partnership could significantly improve RWA usage depth and liquidity.
From a market perspective, this move provides a replicable blueprint for asset issuers, platform operators, and regulators seeking to bring regulated traditional assets onto blockchain platforms.
KuCoin has indicated it will continue forging partnerships to deliver innovative asset solutions to its 41+ million users across over 200 countries and regions.
About KuCoin
Founded in 2017, KuCoin is one of the world’s leading cryptocurrency platforms, offering access to over 1,000 digital assets. The platform provides Web3 wallet services, spot and futures trading, institutional products, and payment solutions. Recognized by Forbes as one of the “Best Crypto Apps & Exchanges” and named a “Top 50 Global Unicorn” by Hurun, KuCoin holds ISO 27001:2022 certification for its strong focus on security and compliance.
About AlloyX
AlloyX Limited specializes in stablecoin payments and asset tokenization. The company integrates traditional banking systems with blockchain solutions, offering stablecoin storage, payments, settlement, investment, FX, and tokenization. AlloyX aims to become Asia’s leading RWA tokenization technology provider, promoting the adoption of tokenized assets and stablecoin payments worldwide.