Key takeaways
- KuCoin becomes the first major crypto exchange to support UBS uMINT token as off-exchange collateral for institutional clients.
- The initiative enables holders to trade digital assets while maintaining ownership of tokenized funds and preserving yields.
- DigiFT facilitates compliant, non-custodial transactions, with support for both stablecoin and fiat subscriptions and redemptions.
KuCoin’s new step in tokenized asset integration
KuCoin has partnered with DigiFT to allow institutional investors holding UBS uMINT tokens to use them as collateral for trading on its platform. UBS uMINT, issued under UBS Tokenize, represents a tokenized money market investment fund launched by UBS Asset Management and operates on the Ethereum blockchain.
Through this arrangement, tokenholders can keep their assets with a regulated third-party custodian while KuCoin mirrors the holdings with stablecoin equivalents for trading purposes. This structure ensures that ownership remains intact, yields are preserved, and transactions are carried out under a compliance-focused framework.
“KuCoin remains committed to innovation alongside unwavering compliance and security. 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. It empowers institutions to unlock tokenized traditional assets for seamless global trading and solidifies KuCoin’s leadership in converging traditional and digital finance.” —BC Wong, CEO of KuCoin
How the system works
DigiFT, licensed by the Monetary Authority of Singapore and approved in principle by Hong Kong’s SFC, acts as the authorized distributor for UBS uMINT. Investors can subscribe to or redeem these tokens using stablecoins or fiat currency, while managing custody through their preferred wallet solutions.
Henry Zhang, CEO of DigiFT, emphasized the capital efficiency benefits of the integration, saying it demonstrates how tokenized real-world assets can improve institutional-grade digital asset infrastructure.
The move responds to a growing demand for on-chain income-generating assets, providing improved liquidity, reduced operational risks, and a clearer path for regulated participation in tokenized investments.
Conclusion
By enabling UBS uMINT holders to trade digital assets without liquidating their positions, KuCoin is bridging the gap between traditional financial instruments and the crypto market. The partnership with DigiFT not only sets a precedent for tokenized money market funds as trading collateral but also points to a broader industry trend of integrating regulated, yield-bearing real-world assets into the digital economy.
