KuCoin is ramping up its $2 billion Trust Project with a new institutional-grade custody model, partnering with BitGo Singapore to roll out off-exchange settlement (OES).
The move is a direct response to growing investor demands for verifiable asset control in a post-FTX crypto market increasingly shaped by regulation and institutional standards.
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The integration enables institutions to trade on KuCoin without transferring assets onto the exchange.
Instead, funds remain securely held by BitGo, a custody provider regulated by the Monetary Authority of Singapore (MAS), and trades are settled automatically through delegated permissions.
The setup also includes insurance coverage of up to $250 million, reinforcing KuCoin’s commitment to de-risked, transparent trading environments.
Trust 2.0: From Proof to Control
The upgraded KuCoin’s Trust Project initiative, dubbed Trust Project 2.0, combines monthly on-chain proof-of-reserves (PoR) reports with physical asset segregation.
While the PoR reports use Merkle Tree mechanisms to publicly map and verify user balances, the newly introduced off-exchange settlement (OES) model adds a second layer of security by enabling operational separation of assets.
The OES feature allows institutional clients to retain full custody of their assets while trading on KuCoin. The system is powered by BitGo Singapore’s Go Network, a custody platform regulated by the Monetary Authority of Singapore (MAS).
Under this model, institutions can execute trades without transferring funds directly onto the exchange. BitGo holds the assets, while KuCoin handles trade execution and automatic settlement, eliminating the need for users to relinquish asset control.
To further enhance its regulatory posture, KuCoin is also pursuing MiCA (Markets in Crypto-Assets) compliance in the European Union and has completed a SOC 2 Type II audit, aligning its risk and data management practices with traditional financial standards.
Exchanges Enter the Trust Era
The development comes as the cryptocurrency industry moves into a new phase of regulatory clarity, following the collapse of FTX and the resulting concerns around investor protection and exchange reliability.
In this context, trading platforms are under growing pressure to demonstrate not only asset solvency but also their ability to safeguard user funds through asset segregation and compliance with regulatory standards.
This shift reflects a broader evolution in the crypto exchange landscape. As the market matures, attention is gradually shifting from short-term incentives toward infrastructure focused on transparency, custody, and oversight.
With more than 41 million users across over 200 jurisdictions, KuCoin is aligning its operations with these changing expectations.
Why This Matters
As exchanges race to meet the demands of regulators and institutions, KuCoin’s model could become the blueprint for compliant, custody-first crypto platforms—shaping the next chapter of digital finance.
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People Also Ask:
KuCoin’s Trust Project is a long-term initiative aimed at enhancing transparency, security, and regulatory compliance. It includes proof-of-reserves reporting and institutional asset custody solutions.
OES allows institutional users to trade on KuCoin while keeping their funds in third-party custody, instead of transferring them to the exchange.
Yes, KuCoin has a Know Your Customer (KYC) process. While basic trading can be done without KYC, users must complete verification to unlock higher withdrawal limits and access advanced features.
