FinChain, a crypto-finance platform incubated by Fosun Wealth Holdings, has partnered with blockchain infrastructure provider Plume to launch an on-chain real-world asset (RWA) yield enhancement strategy targeting annualized returns of up to 7.2%.
Announced on November 4, 2026, the product, called FLEX & FINO, uses FinChain’s interest-bearing FUSD token to combine returns from traditional financial assets with additional income generated through decentralized finance (DeFi) lending.
The strategy allows investors to use FUSD as collateral, borrow USDC against their holdings and deploy the borrowed funds into liquidity pools. FinChain said the arrangement aims to expand the utility of tokenized real-world assets beyond passive ownership by incorporating structured investment strategies.
The projected 7.2% annual percentage yield is based on baseline assumptions and is not a guaranteed return. The companies did not disclose the amount of capital initially committed to the product.
FLEX & FINO Combines Treasury-Backed Yield With DeFi Lending
FUSD, FinChain’s core interest-bearing RWA token, is backed by tokenized short-term US Treasury securities and money market funds.
According to the company, reserve assets are maintained at a minimum collateralization ratio of 100% and held by designated custodians. Income generated by those underlying financial instruments provides FUSD’s existing yield. FLEX & FINO introduces an additional income-generating mechanism through a leveraged borrowing strategy.
Participants deposit FUSD as collateral while continuing to earn its underlying yield. They subsequently borrow USDC and allocate the borrowed stablecoins to liquidity pools offering additional returns. The combined structure seeks to generate higher income than holding FUSD independently.
FinChain has introduced a 90% utilization cap as part of its leverage risk-management framework. The product operates with a T+2 redemption settlement cycle, while interest settlements occur over periods ranging from T+14 to T+30.
However, the strategy introduces risks beyond those associated with the underlying Treasury-backed assets. Borrowing costs, liquidity conditions, collateral fluctuations and smart-contract vulnerabilities could affect realized returns. The stated reserve backing of FUSD does not eliminate risks arising from leveraged investment activity.
Plume Partnership Expands Institutional RWA Applications
The FLEX & FINO launch represents the first product delivered through FinChain’s strategic partnership with Plume, a blockchain platform focused on integrating institutional financial assets into decentralized markets.
The companies said they conducted several rounds of technical discussions covering asset integration, yield modeling and risk management before introducing the strategy. FinChain CEO Zhao Chen described the partnership as an effort to combine traditional asset-management practices with blockchain-based financial infrastructure.
Plume CEO Chris Yin emphasized the importance of developing practical financial applications for tokenized assets rather than focusing exclusively on issuance. Following the launch, assets deposited into FLEX & FINO are expected to be reflected in Plume’s Partner Protocol and Nest Protocol.
An initial total value locked figure has not been disclosed. FinChain also announced that it had completed an integration with cryptocurrency exchange KuCoin, allowing FUSD to participate in the exchange’s RCMS staking mirror solution.
The integration is intended to expand FUSD’s potential use in institutional collateral arrangements. The partnership comes as blockchain companies increasingly explore ways to make tokenized traditional assets usable within lending, liquidity and structured investment products.
Tokenized Treasuries and money market instruments provide exposure to conventional financial yields, while decentralized protocols can introduce additional borrowing and investment opportunities. However, combining these mechanisms also creates operational and financial risks that differ from direct ownership of government securities.
For FinChain and Plume, the commercial significance of FLEX & FINO will depend on investor adoption, actual realized yields and the effectiveness of the strategy’s risk controls. The launch demonstrates another potential application for tokenized financial assets, although its long-term performance remains untested.