Providenciales, Turks and Caicos Islands – September 03, 2026 -- KuCoin has partnered with FinChain to integrate the yield-bearing stablecoin FUSD into its RWA Collateral Mirroring Solution (RCMS), allowing institutional clients to use custodied FUSD holdings as trading collateral without selling or transferring the underlying asset.
FUSD becomes eligible collateral without requiring asset transfer to KuCoin
Under the arrangement, FUSD's eligible collateral value is assessed within a designated custody framework and mapped directly to relevant KuCoin trading accounts, in line with platform rules. Institutional users retain their existing custody and yield arrangements while accessing KuCoin's liquidity, trade execution, risk controls and position management.
RCMS links custody, collateral management and live trading in a single framework
RCMS is KuCoin's off-exchange collateral infrastructure for institutional clients, designed to connect eligible real-world assets held in custody with trading accounts. The system incorporates mapped collateral value into the exchange's collateral management, risk control and position management processes, enabling custodied holdings to support live trading activity without frequent asset transfers or sales.
FUSD is backed by money market funds and highly rated government bonds
FinChain's FUSD draws its backing from real-world assets including money market funds and highly rated government bonds. Subject to platform rules, it can function simultaneously as a yield-bearing asset and as trading collateral, reducing the trade-off institutions face between earning yield and maintaining trading liquidity.
KuCoin frames the deal as expansion of institutional market infrastructure
Tika Lum, Head of Global Business Development for VIP & Institutional Business at KuCoin, said the addition of FUSD to RCMS-eligible collateral connects RWA custodianship, collateral management, liquidity and trade execution, letting institutions deploy capital more efficiently while preserving their existing asset-holding arrangements.
FinChain positions the partnership as a shift from asset issuance to active use
Chen Zhao, CEO of FinChain, said the integration allows FUSD to convert its underlying asset backing into usable collateral value while preserving yield-bearing performance, supporting more agile capital management for institutions across asset allocation, liquidity and strategy execution.
Both firms plan further work on custody connectivity and offshore expansion
The two companies said they will continue collaborating on collateral eligibility assessment, custody connectivity, risk parameters and offshore market expansion, extending FUSD's use within KuCoin's trading infrastructure and broader offshore digital asset markets.