FinChain has partnered with Plume to launch FLEX & FINO, a leveraged yield strategy offering projected annual returns of up to 7.2% on tokenized real-world assets (RWAs).
Summary
- FinChain has partnered with Plume to launch FLEX & FINO, a leveraged yield strategy for its FUSD real-world asset.
- The strategy offers a projected annualized yield of up to 7.2% under baseline assumptions, with a 90% utilization cap.
- FUSD is backed by tokenized short-term U.S. Treasuries and money market funds, with reserves maintained at least 100% collateralized.
- Investors can earn additional yield by using FUSD as collateral, borrowing USDC, and providing liquidity through on-chain pools.
- FinChain has completed a KuCoin integration that enables FUSD to participate in the exchange’s RCMS staking mirror solution.
In a Wednesday announcement, the Fosun Wealth Holdings-incubated platform said the product uses its FUSD token to generate returns from traditional financial assets and decentralized finance (DeFi) lending.
The strategy allows users to deposit FUSD as collateral, borrow USDC against their holdings and place the borrowed funds into liquidity pools. Investors can then earn income from FUSD’s underlying assets alongside potential returns from the liquidity pools.
FinChain has set a 90% utilization cap for the product, while the projected 7.2% annual percentage yield depends on baseline assumptions. The company has not announced a fixed return for participants.
FinChain introduces leveraged yield strategy using FUSD
FLEX & FINO uses FUSD, an interest-bearing token backed by short-term U.S. Treasury securities and money market funds. FinChain said the underlying assets provide the token’s original source of income.
The company maintains that FUSD’s reserves carry a minimum 100% collateralization ratio and are held by designated custodians. It has structured the new strategy to generate additional returns without changing the stated reserve backing.
Under the arrangement, participants first deposit FUSD into the strategy while continuing to receive its underlying yield. They then borrow USDC against that collateral and use the borrowed stablecoins in liquidity pools.
Income from those pools provides another source of potential returns. The strategy uses borrowing to increase exposure, meaning its performance depends on both the underlying asset yield and the cost of leverage.
FinChain expects annualized returns of up to 7.2% under its baseline assumptions. Actual returns may vary with borrowing costs, pool performance and market conditions.
The company has introduced a 90% utilization ceiling as part of its risk controls. Although FUSD is backed by traditional financial assets, the leveraged strategy introduces borrowing and liquidity risks beyond simply holding the token.
Redemptions follow a T+2 settlement cycle, meaning settlement is scheduled two business days after the relevant transaction date. Interest settlements take place over periods ranging from T+14 to T+30.
Plume partnership expands FUSD into DeFi applications
FinChain said FLEX & FINO represents the first product delivered through its strategic partnership with Plume, a blockchain platform focused on bringing institutional assets into decentralized finance.
Before the launch, both teams worked on adapting FUSD to blockchain applications, developing the yield model and establishing risk-management arrangements.
FinChain CEO Zhao Chen described the partnership as a move toward applying traditional asset management strategies to blockchain-based finance.
“Our partnership with Plume is not merely technical synergy,” Zhao said, describing the collaboration as part of FinChain’s plans for institutional RWA products.
Plume CEO Chris Yin said the companies wanted to move tokenized assets beyond issuance and into financial products that investors could use.
“The key to the growth of RWA lies in moving from asset issuance to genuinely usable financial applications,” Yin said.
Under the agreement, the total value locked in FLEX & FINO will be displayed through Plume’s Partner Protocol and Nest Protocol following the launch. FinChain did not disclose an initial TVL figure.
Plume expands tokenized investment products
Plume has spent much of 2026 working with financial companies to introduce tokenized investment products and institutional yield strategies.
In October, crypto.news reported that Plume launched nBND, a tokenized vault backed primarily by shares of Fidelity’s Total Bond ETF.
The product gives blockchain users exposure to an actively managed bond portfolio covering investment-grade debt, high-yield securities and emerging market bonds.
Earlier in June, Plume partnered with Bybit to introduce fixed-income vaults through the exchange’s Earn platform. Those offerings involved investment products linked to PIMCO and CMBI.
A separate agreement with Ether.fi involved a planned $100 million allocation to a yield-bearing RWA vault containing institutional credit assets and bond exposure.
Plume’s collaboration with FinChain introduces another structure using Treasury-backed assets as collateral for borrowing and liquidity provision.
FinChain completes KuCoin integration for FUSD
Alongside the Plume partnership, FinChain announced that it had completed an integration with cryptocurrency exchange KuCoin.
The arrangement allows FUSD to participate in KuCoin’s RCMS staking mirror solution, expanding the token’s use in institutional collateral arrangements.
FinChain said the integration forms part of its work across RWA issuance, custodial staking arrangements and structured investment strategies.
The company plans to develop further products using tokenized traditional financial assets and to work with additional exchanges and blockchain infrastructure providers.
For FLEX & FINO, FinChain said the launch followed several rounds of technical discussions with Plume covering strategy design, blockchain compatibility and risk controls. The company has not disclosed the amount of capital initially committed to the product.
