KuCoin Partners with DigiFT to Enable UBS uMINT Tokens as Off-Exchange Collateral

Highlights:

• KuCoin has partnered with DigiFT to let institutions use UBS uMINT tokens as off-exchange collateral for trading.
• UBS uMINT tokens provide secure access to digital asset markets through the Ethereum blockchain.
• DigiFT will ensure that only institutional holders can transfer UBS uMINT tokens and keep custody.

KuCoin has entered a strategic partnership with DigiFT to enable institutional use of UBS uMINT tokens as off-exchange collateral. The move gives institutional token holders access to a broader range of alternative digital asset investments through KuCoin’s platform. UBS uMINT tokens, distributed via UBS Tokenize, draw security and transparency from Ethereum’s blockchain technology. It is secured by the premium money market securities that are under the custody of UBS Asset Management at the highest risk-control requirements.

KuCoin becomes the first exchange to support UBS uMINT via DigiFT, letting institutions use tokenized money-market funds as collateral for on-platform trading. https://t.co/rhr3izFg1g

— Blockchain Reporter (@blockchainrptr) August 12, 2025

The cooperation enables financial institutions to gain access to institutional-grade cash management services without ceding control of their assets. UBS uMINT tokens can be put in circulation through DigiFT without changing ownership, allowing token holders to access their underlying yield and custodial rights through a regulated third-party custodian. BC Wong, the CEO of KuCoin, stressed that the project helps to achieve the aim of increasing secure investment opportunities among a broader range of people. In addition, it helps cement the framework between traditional and digital finance.

Advancing Real-World Asset Tokenization

The collaboration improves the ability of KuCoin to tokenize real-life assets due to the integration of UBS uMINT into its trading platform. KuCoin uses a mirroring system that matches RWA holdings with similar stablecoin equivalents. The method enables the exchange of assets without affecting ownership. In addition, the arrangement enhances liquidity and maintains operational independence for token holders. Off-exchange custody usage also serves to support investor confidence in the industry.

UBS has been advancing tokenization through multiple initiatives. UBS Tokenize issued approximately $200 million in fully digital structured notes for a third-party issuer last year. The company has also executed a cross-border repurchase transaction involving a natively issued digital bond in a public blockchain.

The growing interest in tokenized assets renders such partnerships valuable in growing the market. Institutions may use institutional-grade returns and be exposed to digital asset markets with less settlement risk. The strategy also simplifies the operational process of including RWAs in trading.

Compliance Steps as KuCoin Partners with DigiFT

DigiFT has an allow list that will only allow transfers of the UBS uMINT token to institutional investors. The control enhances adherence to the associated requirements of the market and promotes the security of assets. The tokens are stored with trusted custodians outside the exchange, eliminating risks of exchange defaults and securing investor assets.

These moves are significant given KuCoin’s regulatory status. The exchange has encountered problems in various jurisdictions with bans in the Netherlands and France. In addition, it reached a recent settlement in the United States.

🔴 [JUST IN] New updates for Kucoin @kucoincom users in France and Netherlands.

Following recent discussions with local regulators, KuCoin has decided to cease its services for residents in France and the Netherlands in compliance with local regulations.

📅 Key dates:
-…

— The ₿itcoin Ape 🐵₿ (@TheApeBitcoiner) July 29, 2025

Nevertheless, KuCoin is still seeking out licenses in other jurisdictions, including Turkey and the European Union. The collaboration with DigiFT and adoption of regulated access frameworks may help manage fears of legal conformity and market protection.

CEO of DigiFT, Henry Zhang, pointed out that the listing of the UBS uMINT tokens in the mirroring program on KuCoin would increase liquidity and strategy trading between institutional players. The partnership comes a month after KuCoin expanded its services to Asia. The company launched its fully regulated digital asset platform in Thailand.