New Leveraged Product Combines Traditional and DeFi Yields

FinChain and Plume introduced FLEX & FINO, an on-chain strategy that enables users to generate additional income from real-world asset exposure. Participants deposit FUSD, the platform’s interest-bearing token backed by tokenized short-term U.S. Treasury securities and compliant money market funds, while continuing to receive its underlying yield. They can then borrow USDC against the collateral and allocate the stablecoins into decentralized finance liquidity pools for further returns.

The approach follows a leveraged looping model. Borrowing costs and liquidity pool performance will determine actual outcomes, as the projected 7.2% APY is based on baseline assumptions and is not guaranteed. FinChain maintains that the reserves supporting FUSD meet a minimum 100% collateralization ratio and are held by designated custodians.

Users earn FUSD’s native income throughout the process. The strategy’s 90% utilization cap serves as a risk control, limiting leverage exposure. Redemptions settle two business days after the request, while interest payments occur between 14 and 30 days after each period ends.

FUSD Backing and Platform Context

FUSD represents a tokenized real-world asset designed for institutional use. Its backing includes short-term U.S. Treasuries and money market funds, with reserves held in compliance with traditional financial standards. This structure connects blockchain participants directly to traditional asset yields while expanding access through DeFi mechanisms.

The partnership expands tokenized assets into practical financial products. Plume specializes in bringing institutional assets into decentralized environments, and the collaboration focuses on moving beyond initial issuance to usable yield applications. The total value locked in FLEX & FINO will appear on Plume’s Partner Protocol and Nest Protocol.

Additional Developments and Integration

FinChain simultaneously completed an integration with cryptocurrency exchange KuCoin. This allows FUSD to participate in the exchange’s RCMS staking mirror solution, broadening institutional collateral options.

Plume has been active in tokenized fixed-income offerings throughout 2026, including a vault linked to Fidelity’s Total Bond ETF and partnerships with exchanges for yield-bearing products. The FLEX & FINO launch continues this momentum by incorporating Treasury-backed assets as collateral for borrowing and liquidity provision.

Industry Perspective on the Collaboration

FinChain CEO Zhao Chen described the partnership as a step toward applying traditional asset management strategies in blockchain-based finance. He noted that the work with Plume extends beyond technical synergy into institutional RWA products.

Plume CEO Chris Yin emphasized the importance of usable applications for tokenized assets. The collaboration aligns with broader efforts to deliver institutional credit and bond exposure through on-chain structures.

Both teams highlighted completed work on blockchain compatibility, yield modeling, and risk frameworks. FinChain plans to develop further products using tokenized traditional financial assets and to explore additional exchange and infrastructure partnerships.