The “Trust Project” aims to bolster security, compliance, and confidence across a sceptical crypto landscape.

At the TOKEN2049 summit, crypto exchange KuCoin unveiled its boldest initiative yet — a $2 billion “Trust Project” designed to restore user confidence amid growing scrutiny of centralised platforms. With a user base of 38 million, KuCoin’s move signals an aggressive strategy to tackle long-standing concerns around security, regulation, and market volatility.

CEO BC Wong described the project as “already in motion”, aiming to address the trust deficit that has plagued the industry following major exchange collapses and regulatory pressure.

Targeting Security and Transparency

A major focus of the Trust Project is on improving platform integrity. KuCoin plans to invest $300 million in developer grants for security audits and allocate $500 million towards enhancing anti-fraud systems. The exchange recently completed a SOC 2 Type II audit and is committing further funds to real-time reserve reporting and third-party audits, aligning its operations with institutional standards.

“We’re making user protection non-negotiable,” said KuCoin EU CEO Oliver Stauber, highlighting measures to reduce the risk of hacks and internal breaches.

Regulatory Compliance and Global Expansion

KuCoin’s past run-ins with regulators in Japan, Hong Kong, and South Korea have made compliance a key pillar of the Trust Project. A significant portion of the fund will go towards strengthening KYC/AML protocols and expanding licensed services globally.

Having recently launched a regulated platform in Thailand, the company is now pursuing an EU MiCAR licence, with ambitions to operate in over 30 European states. “Collaboration with regulators is critical,” Wong acknowledged, signalling a more cooperative approach moving forward.

Boosting KCS Utility and Market Stability

The project also aims to expand the role of KuCoin’s native token, KCS. While no buybacks have been confirmed, token value surged 15% after the announcement, suggesting growing investor confidence. KuCoin hints at new governance features and rewards for holders to deepen engagement.

Meanwhile, $750 million is set aside to stabilise liquidity, particularly for smaller tokens. By doing so, KuCoin hopes to counteract market volatility and attract cautious traders back into the fold.

Education as the Final Pillar

Rounding out the initiative is a global crypto education programme. Though details remain sparse, KuCoin plans to roll out beginner-friendly resources like tutorials and webinars to demystify crypto and promote safe trading habits, especially in rapidly growing regions such as MENA.

“Empowered users build a credible industry,” said Wong, framing education as key to long-term adoption.