Kucoin launches earn-and-loan to link ETFs and on-chain yield

Kucoin has launched an earn-and-loan product that lets users borrow against high-liquidity crypto assets — bitcoin, ether, USDT, USDC and solana — while pledged collateral continues to earn passive yield. The product uses a single-position account structure that pools eligible assets and shows a macro loan-to-value ratio on a unified dashboard.

Risk management is organized into three collateral tiers: an initial level, a margin-call level and a liquidation level that triggers asset sales to prevent bad debt. Kucoin noted the platform applies asset-specific isolation metrics and dynamically adjusts loan-to-value ratios and liquidation thresholds based on real-time volatility and liquidity. The exchange applies tighter parameters to more volatile tokens to limit the risk that a sharp price move in one asset would trigger broader liquidations.

For institutional clients with legal or governance requirements for segregated funds, Kucoin pointed to its master-and-sub-account architecture and asset segregation tools. Institutional users can create separate sub-treasuries and demarcate capital to meet internal controls while still accessing cross-collateral efficiency.

Kucoin described the product as part of a broader plan to expand into payments, lending, real-world asset tokenization and DeFi gateways. The exchange plans to add web-based portal access in 2026 and intends to build real-world asset infrastructure alongside liquidity and capital-management tools.

“We believe that exchanges are evolving far beyond mere trading venues; they are transforming into comprehensive digital financial infrastructure,” the exchange wrote in a statement.

The company framed the offering as a bridge between institutional capital entering through regulated spot ETFs and crypto-native users who prioritize on-chain yield. The product lets users access loans without removing collateral from yield programs and provides account structures for users that require fund segregation.

Kucoin highlighted active risk controls that respond to changing market conditions to prevent localized shocks from spreading. The exchange added that liquidation boundaries are calibrated to guard against bad debt while aiming to preserve user capital where possible.