U Power Limited, listed on NASDAQ under the ticker UCAR, has taken a notable step in its strategic roadmap by signing a memorandum of understanding with the blockchain infrastructure provider IoTeX. The agreement revolves around the acquisition of real-world assets that are backed by corporate bonds issued by U Power, forming the foundation of a broader collaboration aimed at integrating blockchain and AI capabilities into energy and transportation solutions.
The two companies intend to jointly explore the tokenization of real-world assets (RWAs), enabling the digital representation of traditionally illiquid instruments such as corporate bonds. The partnership will also focus on incorporating artificial intelligence into the management of these tokenized assets. Through this initiative, U Power anticipates fortifying its capital structure while simultaneously accelerating the advancement of its core innovation—UOTTA, an electric vehicle (EV) battery-swapping technology.
Market analysts at InvestingPro have pointed out that while U Power has demonstrated remarkable revenue growth of 124% over the past twelve months, the firm continues to grapple with challenges related to cash flow sustainability and profitability. However, its current ratio of 1.85 is considered a healthy indicator of liquidity. The new alliance with IoTeX is expected to play a pivotal role in addressing the company’s financial and technological needs.
U Power’s leadership has reportedly emphasized that the collaboration aligns well with the firm’s Web3 aspirations, particularly in strengthening its ongoing efforts to develop a decentralized ecosystem around battery-token and battery-bank applications. The initiative aims to establish a transparent and efficient system for energy distribution and utilization by embedding blockchain into existing EV infrastructure.
Also playing a key role in the partnership is HabitTrade, an international multi-asset trading platform, which will act as the structuring and execution agent for integrating equity with tokenized assets. HabitTrade’s involvement is expected to ensure regulatory compliance and execution efficiency in the implementation of these innovative financial instruments.
U Power characterizes itself as a provider of AI-enhanced energy systems that connect electric vehicles with broader energy infrastructure. The company’s shift in focus—from merely distributing battery-swapping stations to delivering holistic AI-integrated energy and transport solutions—marks a significant evolution in its business model. This transition is seen as an effort to align with emerging smart city and digital infrastructure trends.
IoTeX, founded in 2017, has built its reputation around enabling decentralized, machine-driven data processing. The company’s core technology is designed to convert machine-generated data into aggregated intelligence that can power artificial intelligence systems. This makes IoTeX a strategic match for U Power, especially given the increasing convergence of blockchain, AI, and IoT in future-facing energy and transport networks.
The latest collaboration reflects a growing trend among technology firms seeking to redefine legacy asset structures and operations through tokenization and intelligent automation. By partnering with IoTeX and HabitTrade, U Power is not only enhancing its capital flexibility but also positioning itself at the intersection of Web3, energy, and mobility—an intersection that could shape the future of EV infrastructure and digital asset management.
