TL;DR
- Collateral pilot: KuCoin and AlloyX are piloting RYT as collateral inside KuCoin’s Off-Exchange Settlement, letting token holders request credit lines for trading while continuing to earn the token’s underlying yield.
- Backed structure: RYT links to the ChinaAMC USD Digital Money Market Fund, with subscriptions and redemptions in token form, and Standard Chartered Bank in Hong Kong providing custody.
- Why it matters: The partners aim to diversify collateral, reduce idle capital, and let traders unlock liquidity without selling positions, with user feedback shaping risk controls.
KuCoin is teaming up with AlloyX on a pilot that lets the real-world asset token RYT be used as trading collateral on the exchange’s credit system. The test folds RYT into KuCoin’s Off-Exchange Settlement environment so holders can request credit lines while still accruing the token’s underlying yield. The partners present the effort as a bridge between regulated money market exposure and on-chain liquidity, aimed at proving that compliant yield-bearing assets can safely power leverage and settlement.
🤝AlloyX partners with @kucoincom to pilot RWA token collateral through the RYT token—backed by @ChinaAMC_HK USD Digital Money Market Fund—in KuCoin’s OES credit system. A bold step toward bridging traditional finance & on-chain innovation! 💡
Learn more: https://t.co/T5kkO2Fpmx… pic.twitter.com/YBNMBlG8oc
— AlloyX (@AlloyX_Limited) August 13, 2025
What the pilot enables
Under the pilot, RYT joins assets eligible for collateralized credit on KuCoin. Traders who hold the token in supported accounts can apply for credit to support market activity without selling their position. The structure lets users unlock liquidity and maintain exposure, pairing RYT with other on-chain holdings in a collateral stack that can be tuned as the program evolves.
What stands behind RYT
RYT represents units linked to the ChinaAMC USD Digital Money Market Fund, issued by China Asset Management Hong Kong, a subsidiary of a leading Chinese manager. Subscriptions and redemptions are in token form, aligning the product with on-chain settlement while rooting it in a familiar fund wrapper. Standard Chartered Bank in Hong Kong handles custody, administration, and unit registration, setting an institutional compliance baseline for the asset chain.
Why KuCoin is testing RWA collateral
KuCoin and AlloyX frame the collaboration as a proving ground for safer credit workflows that incorporate regulated yield into crypto infrastructure. By accepting a token tied to short-duration instruments, the exchange aims to diversify collateral, reduce idle capital, and let users finance trades without abandoning conservative income strategies. The partners say usage feedback will guide refinements to risk controls and expansion to additional compliant assets.
What to watch next
Early phases focus on credit line management inside KuCoin’s Off-Exchange Settlement, with mechanisms iterated as market data comes in. Success could see broader collateral eligibility, integrations with more RWA issuers, and clearer templates for how tokenized fund units flow through exchange risk engines. For traders, the near-term impact is practical access to liquidity against a yield-bearing position, while for the industry, the pilot tests how traditional safeguards translate to programmable finance.
