Kucoin Tackles Idle Capital Problem with Yield Product Launch

Crypto exchange Kucoin has launched its yield product, KCUSD, to help address the issue of idle capital in digital asset markets. The company argues that while stablecoins provide liquidity, massive reserves of capital sit 'functionally dead' in trading accounts.

Kucoin CEO BC Wong said, 'Digital asset markets are entering a new phase in which infrastructure will be measured not only by the access and liquidity it provides, but by how efficiently capital can be deployed across an always-on financial system.'

The KCUSD earn product allows users to earn yields by holding KCUSD, with a dynamic base annual percentage rate (APR) of up to 4%. Eligible users who participate with qualifying new funds during the initial launch period may receive a promotional APR of up to 6%.