KuCoin, a global cryptocurrency exchange, has announced its partnership with AlloyX, a digital financial infrastructure provider, to test Real-World Asset (RWA) tokens as collateral.
The Essence of KuCoin and AlloyX Partnership
The testing starts with the addition of the RYT token to KuCoin’s Off-Exchange Settlement system, which is used for managing credit. This collaboration aims to bridge traditional finance with the crypto industry.
What is the RYT Token?
The RYT token is created by a licensed asset management company and is backed by the ChinaAMC USD Digital Money Market Fund. This fund was among the first financial institutions in Hong Kong and offers its users the ability to subscribe and redeem tokens in digital form.
Benefits of Using RWA Tokens
Now that KuCoin has added RYT as collateral for credit lines, token holders can directly apply for credit within their accounts. Users will also continue earning yields from the money market fund while holding RYT.
KuCoin will continue to deepen similar collaborations to offer innovative solutions for asset management in dynamic markets.
