U Power and IoTeX Partner to Tokenize Battery Assets Using Blockchain

U Power Limited (Nasdaq: UCAR) has entered a strategic partnership with IoTeX to tokenize real-world assets (RWAs) using blockchain technology, marking a significant step in integrating decentralized infrastructure with energy and transportation solutions. The collaboration, formalized via a Memorandum of Understanding on July 23, 2025, centers on leveraging IoTeX’s IoT blockchain platform to transform physical battery assets under U Power’s UOTTA™ battery-swapping technology into programmable digital assets. This initiative aims to create a dual-value system where battery assets generate utility and financial returns, with IoTeX committing to purchase tokens backed by U Power’s corporate bonds [3]. The partnership emphasizes regulatory compliance, though no explicit financial terms or asset flow details have been disclosed [1].

The integration of blockchain and AI technologies seeks to address challenges in the electric vehicle (EV) ecosystem, such as battery provenance verification and residual value assessment. By tokenizing assets, U Power and IoTeX aim to establish a decentralized battery management system, enabling real-time tracking, safety monitoring, and performance optimization. HabitTrade, a global multi-asset trading platform, will serve as the structuring and execution agent for the token-equity integration, signaling a focus on institutional adoption and compliance [3]. This approach allows U Power to secure capital without immediate equity dilution or traditional debt, potentially improving liquidity and reducing capital costs over time through a hybrid funding mechanism [3].

The collaboration aligns with U Power’s broader strategy to leverage Web 3.0 technologies, applying decentralized finance (DeFi) principles to scale its battery-swapping ecosystem. While specific financial terms remain undisclosed, the partnership represents an innovative approach to capital formation in a sector where traditional financing often falls short [3]. By transforming physical infrastructure into liquid digital assets, the initiative demonstrates blockchain’s potential to unlock value in real-world assets, enhancing asset transparency and enabling fractional ownership and efficient capital allocation [1][2].

Market analysis suggests that such tokenization ventures could catalyze broader adoption of blockchain in asset management. Historical collaborations, such as those with Bosch and BMW, have spurred increased attention and activity in related ecosystems [2]. IoTeX’s native token (IOTX), currently trading at $0.02 with a market cap of $233 million, has seen a 30.21% price increase over 90 days and a 136.35% surge in 24-hour trading volume, reflecting growing interest in decentralized infrastructure [2]. Analysts note that regulatory compliances and financial innovations may further drive adoption across sectors [2].

Despite the muted market response to the announcement—due in part to the absence of detailed asset flows—the partnership positions U Power and IoTeX at the forefront of DePIN (Decentralized Physical Infrastructure Network) development. The success of this collaboration could influence future trends in tokenizing tangible assets, fostering new models of asset management and financial innovation [3].

Sources:

[1] [IoTeX and U Power (NASDAQ: UCAR) Partner to Expand DePIN Infrastructure and Tokenize Real-World Assets](https://www.barchart.com/story/news/33592855/iotex-and-u-power-nasdaq-ucar-partner-to-expand-depin-infrastructure-and-tokenize-real-world-assets)

[2] [IoTeX and U Power (NASDAQ: UCAR) Partner to Expand DePIN Infrastructure and Tokenize Real-World Assets](https://www.streetinsider.com/Globe+PR+Wire/IoTeX+and+U+Power+%28NASDAQ%3A+UCAR%29+Partner+to+Expand+DePIN+Infrastructure+and+Tokenize+Real-World+Assets/25087761.html)

[3] [U Power Announces Strategic Partnership with IoTeX to Accelerate...](https://www.stocktitan.net/news/UCAR/u-power-announces-strategic-partnership-with-io-te-x-to-accelerate-ls3xvtv526ah.html)