KuCoin has launched a new yield product called KCUSD, available to retail, high-net-worth, and institutional users holding stablecoins. The company disclosed that users can subscribe with USDT, USDC, or USDG, with a minimum investment threshold of just 1 coin and a base annualized yield of up to 4%.
Earnings are credited daily.
KuCoin states that KCUSD has no subscription fees, and redemptions will return the same asset used for subscription. Earnings are distributed daily and automatically added to the KCUSD balance, requiring no manual reinvestment from users.
This means that a portion of stablecoin balances previously sitting idle in accounts can generate earnings while held. The platform positions this product as a "earn while you hold" arrangement, primarily targeting idle stablecoins in trading accounts.
- Supported assets for purchase: USDT, USDC, USDG
- Minimum purchase threshold: 1 stablecoin
- Base Annual Yield: Up to 4%
Target idle funds in trading accounts
KuCoin stated that stablecoins play a crucial role in providing liquidity and settlement within the digital asset market; however, many users keep large amounts of stablecoins in their accounts for extended periods due to margin requirements or while waiting for trading opportunities. If these funds are not transferred into yield-generating products, they typically generate no return.
The platform believes that traditional staking or standalone wealth management products, while offering returns, may reduce the immediate availability of funds. This trade-off is particularly pronounced for market makers, professional trading institutions, and high-net-worth users, who often need to maintain large, long-term stablecoin positions.
Future plans include expanding the use cases for collateral.
KuCoin stated that the first phase of KCUSD will focus on yield-generating features, with future plans to integrate it into collateral or margin scenarios to reduce the cost of switching between earning yield and maintaining trading funds.
KuCoin CEO BC Wong stated that the company aims for digital asset infrastructure to not only provide liquidity and trading access, but also enhance capital efficiency. According to KuCoin, KCUSD will gradually evolve from a yield product into a tool that connects liquidity, asset utilization, and risk management.
Additional information: KuCoin did not specify the exact yield calculation method for KCUSD, the applicable regions, or the dynamic adjustment conditions corresponding to "up to 4%."