By mid-2025, Falcon Finance, a decentralized finance protocol, had surpassed one billion United States dollars in circulating supply of its stablecoin USDf, marking a significant level of adoption.
In July 2025, the company entered into a strategic partnership with World Liberty Financial and secured an investment of $10 mn.
This strengthened the interoperability between USDf and the fiat-backed stablecoin USD1, while also enabling shared liquidity and conversion infrastructure between the two tokens.
In August 2025, Falcon Finance launched an on-chain insurance fund with an initial size of $10 mn. The initiative was designed to build institutional confidence and improve risk management.
Falcon Finance was established in 2023 and issues USDf, a synthetic over-collateralized stablecoin, together with sUSDf, its yield-bearing counterpart. The dual-token structure supports income generation through strategies such as arbitrage across multiple blockchain networks.
The protocol accepts a wide range of liquid assets—including stablecoins, Bitcoin, and alternative cryptocurrencies—as collateral, and dynamically adjusts collateralization levels to maintain stability.
The insurance fund, seeded with USD1 reserves and further financed through protocol fees, acts as a protective buffer in times of market stress. It helps cover yield commitments, mitigates potential losses, and serves as a backstop in open markets to preserve the price stability of USDf.
Falcon Finance also provides complete transparency regarding USDf reserves on its public reporting page.
The most recent disclosures indicate assets with a total value of $1.29 bn, including substantial holdings in Bitcoin, stablecoins, Dogecoin, Fetch ai, and other liquid assets.
Independent attestations conducted weekly by HT Digital ensure that these figures remain verifiable and current.
Falcon Finance positions itself as a decentralized finance-native synthetic dollar protocol with a strong focus on diversified reserves, detailed risk management, and an institutional-grade insurance framework.
