KuCoin adds FinChain Dollar as off-exchange collateral
KuCoin has added FinChain Dollar (FUSD) to its off-exchange collateral mirroring solution, allowing eligible institutions to receive a credited collateral value while the token remains in a designated custody arrangement. The model separates custody from execution so traders can keep accruing yield while accessing KuCoin order books. The announcement omitted essential operational and legal details: it did not name the custodian, disclose the haircut, explain liquidation rights or provide current reserve attestations, and FinChain's claimed Bermuda issuer licence remained unresolved. Without those disclosures, institutions cannot reliably assess how much usable credit FUSD provides.
FUSD can be credited as collateral without on-exchange custody
Context
An exchange added a yield token to its off-exchange collateral system. The token's reserve data and issuer licence were incomplete. The companies said they will continue working on custody connectivity and risk terms.
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