In a “significant milestone” in the real-world asset (RWA) tokenization economy, KuCoin and DigiFT are entering a strategic partnership to offer institutional investors access to collateral for the UBS uMINT token. The token is the first tokenized money market investment fund launched by UBS Asset Management.
The partnership pioneers a new standard in the RWA tokenization market, as KuCoin becomes the first global crypto exchange to support collateralization of UBS uMINT tokens. Through DigiFT, an authorized distribution partner, institutional tokenholders can utilize their uMINT tokens as off-exchange collateral, enabling efficient trading on digital assets and access to a wider array of alternative digital asset investments offered by KuCoin.
Details on this Partnership
The partnership will unlock new levels of liquidity, empowering institutions to unlock trillions of dollars in tokenized traditional assets. KuCoin aims to help the growth of RWA tokenization by narrowing the gap between Tradfi and digital asset investment, leading the field in digital finance solutions.
“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.”
The uMINT is offered under UBS Tokenize in the bank’s broader vision of expanding into RWA tokenization. The token is underpinned by UBS’s high-quality money market instruments, managed within a conservative, risk-controlled framework. In June 2023, UBS Tokenize originated ~$ 200 million of fully digital structured notes for a third-party issuer. And in November 2023, UBS completed the world’s first cross-border repurchase transaction with a natively-issued digital bond fully executed and settled on a public blockchain. The partnership with DigiFT and KuCoin is firmly rooted in the company’s ongoing strategy to integrate blockchain technology into traditional finance operations.
DigiFT, the authorized distributor of uMINT, also ties in the tokenization adoption story, as one of the leaders in providing access to tokenized RWAs. Henry Zhang, CEO of DigiFT, believes the mirroring program by KuCoin, where KuCoin mirrors RWA holdings with stablecoin equivalents without transferring ownership, will enhance liquidity and advance trading.
“The integration of the UBS uMINT token, which will enable tokenholders to use their funds as collateral via KuCoin’s mirroring program, exemplifies our focus on enhancing capital efficiency across digital asset markets through tokenized RWAs,” Zhang added. “Together with our partners, we are reshaping the innovation contours of institutional digital asset infrastructure.”
The on-chain tokenization and distribution partner also supports subscription and redemption via stablecoins and fiat currency in a non-custodial manner, with clients using their preferred custody wallet solution.
The KuCoin Exchange Mirroring Program
The latest initiative by KuCoin shows the growth of cryptocurrency and blockchain technology in the global economy. As tokenization of RWAs explodes, KuCoin aims to guide the new investors on real-world applications in the market via the mirroring program. The program will enable sophisticated trading on digital assets while preserving yields and control through a third-party regulated custodian.
KuCoin aims to revolutionize the RWA industry as the rising demand for high-grade on-chain income assets, offering enhanced liquidity, risk reduction, and operational efficiencies becomes key in a highly regulated environment.
In the future, KuCoin aims to grow its partnerships in the RWA tokenization space, drive broader adoption and foster a more interconnected financial ecosystem. This initiative sets a new standard for innovation, positioning KuCoin at the forefront of compliant, user-centric solutions in the evolving digital economy.
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