img

KuCoin Security Monthly Report: August 2025

2025/08/29 02:57:02

Custom Image

At a Glance:

  • Fully Backed: Reserve ratios stayed above 100% for BTC, ETH, USDT, and USDC, reaffirming strong on-chain asset backing and operational transparency.
  • Top Futures Growth: KuCoin ranked #1 in MoM derivatives trading growth, with a 71% surge in volume, outpacing major competitors.
  • Expanded RWA Integration: Partnered with DigiFT (UBS uMINT), AlloyX (RYT), and Thailand’s Ministry of Finance (G-Token) to introduce institutional-grade, government-backed RWA collateral with regulated custodians and secure fund structures.
 
  1. Fully Backed: 100%+ Reserve Ratios

In August, KuCoin continued to uphold full transparency and responsible fund management through our ongoing Proof of Reserves (PoR) initiative. All major assets, including BTC, ETH, USDT, and USDC, remained fully backed with reserve ratios exceeding 100%.
 
Custom Image
 
These results are publicly verifiable via our on-chain reserve dashboard and reinforce our commitment to maintaining a secure and trustworthy platform for users worldwide.
 
 
  1. Verified by Hacken: Another Month of Transparent Reserves

In August, KuCoin completed its latest independent Proof of Reserves (PoR) audit with cybersecurity firm Hacken, confirming that BTC, ETH, USDT, and USDC user deposits remain fully backed with over 100% reserves.
 
The audit process included:
  • On-chain verification across multiple blockchains
  • Wallet ownership validation
  • Independent oversight of balance sheet compilation
This marks 33 consecutive months of PoR reporting — a clear sign of KuCoin’s long-term dedication to transparency and user trust.
 
  1. KuCoin Futures: #1 in Monthly Growth

 
In July, KuCoin recorded the highest month-over-month growth in derivatives trading volume among major global exchanges, with a 71% increase. Our spot trading volume also rose by 65%, significantly outperforming the broader market, which saw a 31% increase in derivatives volume amid a bullish Bitcoin rally.
These results reflect the growing confidence in KuCoin’s trading infrastructure and the strength of our product offerings.
 
 
  1. Anti-Phishing Month: Empowering Users Through Education and Defense

 
KuCoin launched its first Anti-Phishing Month campaign, a platform-wide initiative combining education, incentives, and technical protection to raise user awareness and strengthen security across the ecosystem.
Key Highlights:
  • Learn + Quiz + Defend model empowers users to acquire essential anti-scam skills while earning rewards.
  • Advanced phishing detection blocks over 5,000 high-risk login attempts daily.
  • Multi-layer alerts and MFA secure account operations, such as logins, withdrawals, and API bindings.
  • Continuous education via KuCoin’s in-app Security Academy and phishing case studies.
“Security should not only be the platform’s responsibility; it should be an ability every user possesses.” — BC Wong, CEO of KuCoin
The campaign reflects KuCoin’s long-term strategy of "Education + Defense", aiming to build a safer, more resilient crypto trading environment for all.
 
 
  1. RWA Innovation with Institutional Safeguards: KuCoin x DigiFT x UBS uMINT

 
KuCoin became the first global crypto exchange to support UBS uMINT, a tokenized money market investment fund issued by UBS Asset Management and distributed via DigiFT, a licensed RWA platform. This partnership allows institutional investors to use uMINT as off-exchange collateral for trading on KuCoin.
Security & Compliance Highlights:
  • Institutional-grade instruments under a risk-managed framework, offering secure exposure to real-world income-generating assets.
  • Custodial safeguards via third-party regulated partners ensure asset protection without transferring ownership.
  • Adheres to robust compliance standards, enabling tokenized TradFi assets to enter the digital trading ecosystem with confidence.
  • KuCoin’s mirroring model reflects RWA holdings 1:1 with stablecoin equivalents, allowing liquidity without compromising control.
This initiative marks a significant leap in secure RWA integration, setting a new benchmark for compliant, collateralized trading infrastructure in the cryptocurrency sector.
 
 
  1. RWA-Backed Credit Innovation: KuCoin x AlloyX

 
KuCoin partnered with AlloyX to pilot the integration of the RYT token—backed by the ChinaAMC USD Digital Money Market Fund—into KuCoin’s Off-Exchange Settlement (OES) system. This marks a major step toward enabling compliant, risk-managed RWA tokens as exchange credit collateral.
Security & Trust Highlights:
  • Backed by licensed institutions: The RYT token is issued by China Asset Management (HK) with fund custody and operations handled by Standard Chartered Bank, ensuring institutional-grade safeguards.
  • Collateral integrity: RYT holders can access credit lines via KuCoin, with assets remaining under secure third-party custody while being used to unlock liquidity.
  • Compliance-by-design: The partnership embeds regulatory-grade architecture into collateral mechanisms, aligning with TradFi standards.
  • Bridging Web2 & Web3: KuCoin's integration allows users to leverage regulated real-world funds just like any on-chain asset, expanding asset utility with full transparency.
This collaboration sets a new benchmark for secure collateralization of tokenized real-world assets, reinforcing KuCoin’s mission to deliver a safe, regulated trading infrastructure for the next generation of financial tools.
 
 
  1. National-Grade RWA Adoption: KuCoin Supports Thailand’s G-Token Initiative

In a landmark move for compliant RWA innovation, KuCoin has become the first global crypto exchange to support Thailand’s G-Token: the world’s first publicly offered tokenized government bond, issued by the Ministry of Finance and listed on a digital asset exchange.
 
This historic initiative is developed in partnership with KuCoin Thailand, XSpring Digital, Krungthai XSpring, and SIX Network, and brings sovereign bonds fully on-chain under national regulatory frameworks.
 
The G-Token offers broader access to public debt markets by lowering investment thresholds for retail users, while improving transparency, efficiency, and liquidity through blockchain.
 
KuCoin will play a key role in tech advisory, secondary market trading, and global expansion, reinforcing our commitment to secure, regulated RWA adoption worldwide.
 
 

Closing Thoughts

 
At KuCoin, we believe that security is not a one-time milestone—it’s a continuous journey. August saw meaningful progress: from stronger reserve backing and third-party audits to deeper RWA integration and platform-wide anti-phishing efforts.
 
As we move forward, our focus remains clear: empower users with transparency, elevate security standards, and innovate responsibly at the intersection of TradFi and crypto.
 
Trust is built month by month. We’ll keep earning it.
 
Note on Reserve Tracking Accuracy
Third-party analytics tools that monitor KuCoin's reserves may occasionally display outdated figures if wallet address updates are delayed during system maintenance. Rest assured, all user funds remain 1:1 backed and secure. We actively collaborate with data providers to ensure timely address updates for accurate reserve reporting. For real-time verification, always refer to KuCoin's official Proof of Reserves page: https://www.kucoin.com/proof-of-reserves