KuCoin has partnered with FinChain to integrate the yield-bearing asset FUSD into its Real-World Asset Collateral Mirroring Solution (RCMS). Through this integration, eligible institutional clients will be able to use FUSD as trading collateral without selling the asset or transferring it directly to KuCoin.
The mechanism allows the value of FUSD, while it remains held within an approved custody structure, to be reflected on KuCoin trading accounts. As a result, institutional participants can maintain their existing custody and yield arrangements while gaining access to the exchange’s liquidity, trade execution, and risk management infrastructure.
For KuCoin, this represents another step in developing infrastructure that connects real-world assets, tokenization, and institutional crypto trading.
How the RCMS systеm Works
RCMS is KuCoin’s off-exchange collateral infrastructure designed for institutional clients. It allows eligible real-world assets held with approved custodians to be linked to trading accounts on the platform.
Instead of transferring the asset directly to the exchange, KuCoin recognizes the verified collateral value within its position management and risk control systems. This enables institutions to use their capital for active trading without frequently selling or moving the underlying assets.
The model combines custody, collateral management, platform liquidity, and trade execution within a single infrastructure. According to KuCoin, this approach can improve capital efficiency for institutional clients.
FUSD Can Generate Yield While Serving as Collateral
FUSD is backed by real-world financial assets, including money market funds and highly rated government bonds.
Following its integration into RCMS, eligible clients will be able to use the value of FUSD to support trading positions while the asset itself remains within an approved custody structure and continues to preserve its yield-bearing characteristics.
This structure may help solve a common challenge for institutional market participants: choosing between holding yield-generating assets and maintaining sufficient liquidity for active trading.
Unlike many RWA products that are primarily designed for purchase and long-term holding, FUSD gains an additional practical use case. Its value can be used as trading collateral without removing the asset from its existing custody arrangement.
KuCoin Connects the RWA Market With Crypto Liquidity
Under the partnership, FinChain will be responsible for FUSD and the structure backing its underlying assets. KuCoin, meanwhile, will provide the RCMS infrastructure, risk management systems, liquidity, and trade execution capabilities.
This division of responsibilities is intended to create a bridge between traditional financial assets and crypto markets, enabling institutional clients to use tokenized assets in real trading strategies.
The integration also expands the range of yield-bearing RWA assets supported through RCMS and strengthens KuCoin’s institutional offering.
Tika Lam, Head of Global Business Development for KuCoin’s VIP and institutional business, noted that simply issuing and holding tokenized assets is not enough for the market to develop fully. In her view, such instruments need practical utility within financial infrastructure while remaining subject to robust risk management frameworks.
The FUSD integration is designed to bring together RWA custody, collateral management, liquidity, and trade execution without requiring clients to change the existing ownership structure of their assets.
FinChain Aims to Expand Institutional Use of FUSD
FinChain CEO Chen Zhao said the company wants to develop FUSD not only as a passive holding instrument, but also as an asset that can be used directly within trading infrastructure.
Using FUSD as collateral through RCMS allows the value of its underlying assets to be converted into deployable trading capital while preserving the yield characteristics of the asset itself.
For institutional participants, this could provide greater flexibility in liquidity management, capital allocation, and the execution of different trading strategies.
KuCoin and FinChain plan to continue working together on collateral eligibility criteria, custody connectivity, risk parameters, and the further expansion of FUSD across offshore digital asset markets.
RWA Assets Are Becoming Part of Institutional Crypto Infrastructure
The partnership between KuCoin and FinChain reflects the broader development of the Real-World Asset (RWA) market. Tokenized financial instruments are gradually moving beyond simple holding and are beginning to function as components of broader financial infrastructure.
For large market participants, one of the most attractive possibilities is the ability to use real-world assets as collateral without giving up their yield or transferring them directly onto a trading platform.
This is the model RCMS aims to provide: the asset remains with an approved custodian, while its verified value can be recognized on the exchange for managing trading positions.
If similar solutions gain wider adoption, tokenized bonds, money market funds, and other RWA instruments could play an increasingly important role in institutional liquidity management across crypto markets.
KuCoin Continues to Develop Its Institutional Business
KuCoin was founded in 2017 and today serves users across more than 200 countries and regions. The platform supports trading in more than 1,500 digital assets and offers spot and futures markets, institutional services, asset management, and Web3 wallets.
The company also continues to strengthen its security and compliance infrastructure. KuCoin has obtained a number of international certifications, including SOC 2 Type II, ISO/IEC 27001:2022, ISO/IEC 27701:2019, ISO 22301:2019, and ISO/IEC 42001:2023.
In addition, the platform is registered with AUSTRAC in Australia and has obtained a MiCA license in Austria, continuing to expand its regulated presence across international markets.
FinChain, meanwhile, is a Web3 brand incubated by Fosun Wealth Holdings. The company focuses on real-world asset infrastructure, including onchain identity, RWA issuance, tokenization, and liquidity management.
The integration of FUSD into RCMS demonstrates how tokenized real-world assets are gradually evolving from simple investment products into full-fledged financial instruments that can be used in trading, collateral management, and institutional investment strategies.