KuCoin and DigiFT have joined forces in a strategic partnership to give collateral access to the UBS uMINT token to institutional investors. UBS Asset Management has introduced the first-ever tokenized money market investment fund, exploring new possibilities in the real-world asset (RWA) tokenization economy.
KuCoin is the first global cryptocurrency exchange to provide UBS uMINT collateralization support. Institutional tokenholders are now able to utilize uMINT tokens as off-exchange collateral via an accredited distributor, DigiFT. Furthermore, this facilitates seamless digital asset trading and greater access to alternative investments on KuCoin’s multi-asset class trading platform.
More than $14 billion has already been invested in on-chain RWA tokenization platforms. With RWA adoption continuing, blockchain-institutional infrastructure is rapidly transforming. KuCoin looks to capitalize on such momentum and expand the use of tokenized assets to maximize utility and tradability in crypto and daily finance.
KuChain sets new RWA trading standards
KuCoin is on track to have more RWA tokenization partnerships because interest in best-in-class on-chain streams of income assets is increasing. Wider RWA adoption in the end-game ultimately involves creating interconnected marketplaces.
Moreover, by offering more customizable trade solutions to institutional clients, greater capital efficiency, and stimulating high returns across multiple asset classes and blockchain-enabled marketplaces.
The Investors will exchange RWA-tied tokens against stablecoins without moving ownership. This helps to conserve yields and rights. Safety is ensured by a third-party regulated custodian. Trading will occur on secure, regulatory-compatible blockchain infrastructure.
Unlocking liquidity between TradFi and digital assets
The venture has the potential to unlock trillions of tokenized traditional assets. KuCoin looks to bridge traditional finance and digital assets. It acts as an industry-leading player in digital finance, driving innovation with regulatory compliance and security.
“KuCoin remains committed to innovation alongside unwavering compliance and security,” stated BC Wong, CEO of KuCoin. “This partnership with DigiFT to support the UBS uMINT token highlights a significant step forward in exploring the viability and adoption of secure investments for a broader audience.”
UBS Tokenize owns the uMINT toke, It has support from the highest-caliber money market vehicles in a conservative, controlled-for-risk framework. Moreover, UBS itself issued $200 million of digital structured notes way back in June 2023 and conducted a historic cross-border repo with a digital bond way back in November 2023.
Henry Zhang, CEO of DigiFT, pointed to KuCoin’s mirroring program. It mirrors RWA holdings against stablecoin equivalents, increasing liquidity without transferring ownership. According to Zhang, the action will enhance capital efficiency and support greater institutional market participation in tokenized RWA products.
DigiFT also supports subscription and redemption in both stablecoins and fiat currency. Therefore, it operates in a non-custodial model, allowing clients to use preferred custody wallet solutions. Adding flexibility and trust for institutions engaging in the tokenized RWA economy.
