- KuCoin partners with AlloyX to test RWA collateral mechanisms.
- RYT token serves as collateral for crypto credit lines.
- The initiative emphasizes security and innovation in asset management.
KuCoin and AlloyX have initiated a pilot program on August 14, 2025, to test RYT tokens as collateral on KuCoin, integrating real-world assets into their crypto credit system.
This collaboration signifies a pivotal move towards regulated asset adoption within crypto markets, offering new collateral options and potentially stabilizing lending markets through credible asset incorporation.
Introduction
KuCoin and AlloyX have initiated a pilot program using the RYT token. The token, backed by the ChinaAMC USD Digital Money Market Fund, acts as credit collateral on KuCoin. This move integrates regulated assets with crypto exchanges.
The collaboration involves major financial institutions, emphasizing secure and compliant solutions. BC Wong, CEO of KuCoin, highlights the importance of such partnerships in bridging traditional finance with the crypto industry, aiming to provide secure asset management.
KuCoin users can now experience enhanced asset utilization, with the RYT token offering yield alongside being used as collateral. This collaboration anticipates increased market participation and better asset appreciation opportunities for global users in dynamic environments.
The pilot’s introduction may impact global crypto markets by offering new collateral mechanisms. Thomas Zhu, CEO of AlloyX, notes the project’s role in offering the industry structural validation opportunities and expanding user possibilities for asset use.
The program could potentially lead to expanded adoption of RWAs as collateral on major platforms. Structural mechanisms and regulated frameworks may see enhanced market trust and diversification across crypto exchanges.
Integrating RWAs into mainstream crypto exchanges like KuCoin may pave the way for similar initiatives. Past integrations in DeFi platforms suggest increased compliance and asset diversity, fostering broader crypto ecosystem development.
BC Wong, CEO of KuCoin, “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.” KuCoin Blog
