Nikolas Sargeant
KuCoin has partnered with FinChain to integrate FUSD into its Real-World Asset Collateral Mirroring Solution (RCMS), allowing eligible institutional clients to use the yield-bearing asset as collateral for trading.
In a press release shared with Cryptowisser, KuCoin stated that the integration means institutions can access FUSD’s eligible collateral value without selling the asset or transferring it directly to KuCoin.
Instead, FUSD held under an approved custody arrangement can be mapped to relevant KuCoin trading accounts in accordance with the exchange’s platform and risk-management rules.
This structure allows eligible clients to maintain their existing custody and yield arrangements while accessing KuCoin’s liquidity, trade execution, position management and risk-control infrastructure.
KuCoin Expands RCMS With Yield-Bearing FUSD
RCMS is KuCoin’s off-exchange collateral infrastructure for institutional customers. It connects eligible real-world assets held with approved custodians to trading accounts on the exchange.
Through the platform, KuCoin incorporates the mapped value of custodied assets into its collateral management, risk-control and position-management systems. Institutions can consequently use qualifying assets to support active trading without frequently selling or moving them onto the exchange.
The system combines custody connectivity, collateral management, platform liquidity and trade execution within one framework. KuCoin said the model is intended to give institutions greater flexibility when managing capital and liquidity.
FUSD is backed by real-world assets, including money market funds and highly rated government bonds. Subject to KuCoin’s eligibility requirements, the asset can continue generating yield while also supporting trading positions as collateral.
The arrangement could help institutions address the traditional trade-off between holding income-generating assets and maintaining sufficient liquidity for trading.
Unlike RWA products designed primarily for subscription and long-term holding, FUSD will gain an additional use case through RCMS. Its underlying asset value can be converted into usable collateral while the token remains within the designated custody framework.
Partnership Connects RWA Custody With Crypto Markets
The collaboration establishes a process connecting FUSD’s underlying asset backing and custody arrangements with KuCoin’s collateral and trading infrastructure.
FinChain will provide FUSD and oversee its underlying asset backing. KuCoin will use RCMS, alongside its liquidity, trade execution and risk-management systems, to make the asset’s eligible collateral value available within approved trading accounts.
The partnership expands the range of yield-bearing RWA assets supported by RCMS and strengthens KuCoin’s position as a provider of institutional digital asset market infrastructure.
Tika Lum, KuCoin’s Head of Global Business Development for VIP and Institutional Business, said tokenized assets must offer practical utility beyond issuance and ownership.
“For tokenized assets to become an integral component of market infrastructure, issuance and holding alone are insufficient; they must be used safely within prudent risk management frameworks,” Lum said.
According to Lum, integrating FUSD connects RWA custody, collateral management, liquidity and execution, enabling institutions to use their capital more efficiently without disrupting existing asset-holding arrangements.
KuCoin will continue working with industry partners to develop secure, compliant and institutional-grade infrastructure connecting traditional and digital asset markets, Lum added.
FinChain Targets Broader Institutional Adoption
FinChain CEO Chen Zhao said the company is focused on expanding FUSD beyond passive ownership and into practical financial applications.
“We focus not merely on whether FUSD can be held, but whether it can be utilized within real-world trading infrastructure,” Zhao said.
Zhao added that using FUSD as RCMS collateral transforms the value of its underlying assets into deployable trading collateral while maintaining its yield-bearing characteristics. This could give institutions greater flexibility across liquidity management, asset allocation and strategy execution.
KuCoin and FinChain will continue collaborating on collateral eligibility assessments, custody connectivity, risk parameters and expansion across offshore digital asset markets.
The companies expect the partnership to broaden FUSD’s institutional use cases by connecting tokenization, custody, collateral management, platform liquidity and trade execution within a single framework.
Founded in 2017, KuCoin is a leading global crypto platform with more than 45 million users across 200+ countries and regions. The platform offers trading in 1,500+ digital assets, along with spot, futures, institutional wealth management and Web3 wallet services, and has been recognized by authorities including Forbes and Hurun.
KuCoin has obtained SOC 2 Type II, ISO/IEC 27001:2022, ISO/IEC 27701:2019, ISO 22301:2019 and ISO/IEC 42001:2023 certifications, continuing to strengthen its security and privacy capabilities. Supported by its AUSTRAC registration in Australia and MiCA license in Austria, and under the leadership of CEO BC Wong, KuCoin continues to advance global compliance and innovation.
Meanwhile, FinChain is a Web3 brand incubated by Fosun Wealth Holdings. It positions itself as a global physical-financial blockchain network and financial-infrastructure platform supporting real-world-asset on-chain circulation. Centering on on-chain identity, RWA technology, asset issuance, and on-chain liquidity management, FinChain connects traditional-financial assets with digital-asset-use cases and keeps expanding institutional adoption and ecosystem partnerships for FUSD.
