KuCoin and AlloyX have announced the launch of a pilot program using the RYT token, which serves as collateral on the KuCoin platform. This step is aimed at integrating regulated assets into the crypto lending system.
Launch of Pilot Program
On August 14, 2025, KuCoin and AlloyX launched a pilot program to test RYT tokens as collateral in the KuCoin lending system. This collaboration is crucial for the adoption of regulated assets in crypto markets.
Role of RYT Token
The RYT token, backed by the ChinaAMC USD Digital Money Market Fund, is utilized as credit collateral on KuCoin. This allows users of the platform to utilize their assets more efficiently while earning yield from the token when used as collateral.
Impact on Crypto Markets
The introduction of the program could have a significant impact on global crypto markets by offering new collateral mechanisms. According to Thomas Zhu, CEO of AlloyX, this project provides opportunities for structural validation in the industry and expands the possibilities for users to utilize assets.
Integrating real-world assets into platforms like KuCoin may lead to expanded adoption as collateral, enhancing market trust and asset diversification within the crypto ecosystem.
