Fosun Launches Yield-Bearing Stablecoin on Avalanche

Fosun Wealth Holdings has introduced FUSD, described as Asia’s first yield-generating stablecoin backed by real-world assets, on Avalanche’s C-Chain. The Hong Kong-based subsidiary of Fosun International is positioning the digital token as a conduit between Asian institutional investors and decentralized finance liquidity.

Unlike traditional stablecoins that are designed solely to maintain a one-to-one peg with the US dollar, FUSD is structured to generate returns from its reserve assets. These reserves consist of money market funds and government bonds managed by established financial institutions, including BNY Mellon, ChinaAMC, and Taikang. Through this structure, token holders are expected to earn yield while retaining liquidity across decentralized protocols.

The stablecoin was issued by FinChain, Fosun Wealth’s Web3 platform. FinChain previously secured multimillion-dollar backing during its first external funding round in August 2025, with investments from the Solana Foundation and Animoca Brands. The deployment of FUSD on Avalanche marks FinChain’s first major product release since that capital raise.

Targeting Institutional Investors

FUSD is tailored to a defined segment of the financial market, including family offices, private equity firms, and pension fund managers. These institutions typically seek transparent settlement mechanisms and regulatory-compliant access to blockchain-based yield opportunities. The product is structured to resemble an on-chain money market fund, offering immediate redemption while maintaining exposure to underlying income-generating assets.

FinChain’s leadership indicated that FUSD introduces a new category of yield-bearing stable tokens capable of addressing a substantial share of global financial assets. The company also signaled plans to expand its real-world asset tokenization efforts through its FinCoin Protocol, which is expected to broaden the scope of tokenized financial instruments.

In selecting Avalanche as the primary network for issuance, FinChain evaluated several technical and regulatory considerations. The company cited Avalanche’s near-instant transaction finality, established decentralized finance liquidity pools, and compliance-focused infrastructure as decisive factors. These features are viewed as particularly relevant for institutional treasury operations, where transaction speed, liquidity depth, and regulatory alignment are critical.

Expanding Avalanche’s Institutional Presence

The launch of FUSD further strengthens Avalanche’s position within Asian institutional finance. In Japan, Toyota Blockchain Lab and SMBC Group are already developing blockchain-based solutions on the network. Meanwhile, in South Korea, Mirae Asset Global Investments and Woori Bank have advanced from pilot programs to live deployments involving tokenized funds and bank-backed stablecoins.

Ava Labs’ Hong Kong leadership noted that the integration with Fosun Wealth Holdings facilitates the entry of traditional financial assets into blockchain ecosystems. This perspective aligns with Avalanche’s broader strategy of attracting established financial institutions seeking compliant digital asset infrastructure.

Regulatory Support and Strategic Positioning

Fosun’s digital asset initiatives have progressed alongside regulatory developments in Hong Kong. In May 2024, Fosun International Securities received preliminary approval from the Hong Kong Securities and Futures Commission to provide virtual asset dealing services. This authorization positions the group to distribute FUSD through conventional wealth management channels while operating within an emerging regulatory framework.

Additionally, Fosun operates Finloop, an AI-driven institutional wealth platform that was designated as a strategic enterprise under Hong Kong’s government-backed OASES program in April 2025. This endorsement reflects official support for compliant real-world asset tokenization and signals the direction regulators envision for blockchain integration within traditional finance.

Although FUSD is designed with multi-chain compatibility in mind, Avalanche will serve as the primary venue for liquidity and initial decentralized finance integrations. Market participants are now assessing whether institutional inflows tied to the stablecoin will translate into sustained on-chain activity or remain largely confined to enterprise-focused use cases.

Through FUSD, Fosun Wealth Holdings is advancing a model that blends regulated financial instruments with decentralized infrastructure, aiming to align institutional capital with blockchain-native liquidity in a compliant and scalable manner.

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