KuCoin and DigiFT Enable UBS uMINT Token Collateralization to Bridge Traditional and Digital Finance

KuCoin has entered into a strategic partnership with DigiFT to support the collateralization of UBS uMINT tokens, marking a significant step in integrating traditional finance with digital asset markets [1]. The uMINT token, issued by UBS Asset Management, represents the first tokenized money market investment fund under the UBS Tokenize program. Through this collaboration, institutional investors can now use their uMINT tokens as collateral on KuCoin, providing them with expanded access to a broader range of digital assets while maintaining custody and ownership of their holdings [1].

The initiative is designed to enhance liquidity within the tokenization market and facilitate the use of real-world assets (RWAs) in digital finance. KuCoin’s mirroring program is a key component of this effort, as it matches RWA holdings with stablecoin equivalents, allowing investors to trade digital assets without transferring ownership [1]. This approach supports a non-custodial model, in line with DigiFT’s role in distributing uMINT tokens and enabling transactions in both stablecoins and fiat [1]. UBS has previously executed blockchain-based cross-border repurchase transactions and issued fully digital structured notes, demonstrating its commitment to integrating blockchain technology into traditional financial products [1].

The UBS uMINT token is backed by high-quality, risk-managed money market instruments, further reinforcing institutional confidence in blockchain-based financial products [1]. By leveraging these instruments as collateral, KuCoin aims to bridge traditional finance with digital assets and offer institutions efficient access to tokenized, high-grade instruments. KuCoin’s CEO, BC Wong, emphasized the company’s focus on innovation, compliance, and security as key drivers of its strategy in the evolving crypto ecosystem [1].

DigiFT’s contribution is pivotal, as the company enables the distribution and trading of uMINT tokens while allowing clients to maintain their preferred custody solutions. Henry Zhang, CEO of DigiFT, noted that KuCoin’s mirroring program enhances trading efficiency and liquidity by preserving yields and control through regulated third-party custodians [1]. The partnership reflects a broader trend of increasing demand for tokenized, income-generating assets and underscores the growing importance of RWA integration in the digital asset space.

KuCoin’s initiative is not only about expanding product offerings but also about building a more connected and compliant financial system. The exchange’s strategic alignment with UBS and DigiFT highlights its commitment to supporting institutional-grade digital asset solutions while adhering to regulatory standards. As tokenization continues to gain traction, this collaboration positions KuCoin at the forefront of bridging traditional and digital finance [1].

Source: [1] KuCoin Partners with DigiFT to Support UBS uMINT Token Collateralization (https://cryptofrontnews.com/kucoin-partners-with-digift-to-support-ubs-umint-token-collateralization/)