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Falcon Finance is a decentralized finance (DeFi) platform that provides stablecoin solutions, cross-chain interoperability, and yield optimization services. Launched in 2023, the protocol supports lending, borrowing, and liquidity provisioning across multiple blockchain networks, anchored by its primary stablecoin, Falcon USD (USDf). [1] [2]
Falcon Finance presents an approach to creating an overcollateralized synthetic dollar using a dual-token system comprised of USDf and sUSDf.
The platform accepts multiple types of collateral, allowing a range of assets to serve as backing. It uses a dynamic system to assess liquidity and risk in real time. [1] [2] [3]
According to the whitepaper published in February 2025, Falcon Finance was developed in response to the need for solutions that combine sustainable yield with effective risk management in volatile markets. The protocol was designed to address limitations observed in traditional methods that rely solely on positive arbitrage or funding rate strategies. In March 2025, during its Closed Beta phase, Falcon Finance reached $100 million in Total Value Locked (TVL). This phase allowed for adjustments to the system’s interface and functionality in preparation for a wider public launch. [1] [2] [3] [7] [8]
Falcon Finance’s architecture is designed to operate efficiently under varying market conditions. Key aspects include:
USDf is the principal component of the Falcon Finance ecosystem, functioning as an overcollateralized synthetic dollar.
The circulating supply of USDf adjusts algorithmically based on demand. Reserve balances are audited quarterly and displayed in real time on the platform’s dashboard. Governance decisions, such as adjustments to collateral ratios, are voted on by FALCON token holders.
Falcon Finance operates as a synthetic dollar protocol that integrates a dual-token system with minting and redemption mechanisms alongside diversified yield-generation strategies and a comprehensive risk management framework. The protocol is designed to offer a stable synthetic dollar backed by a variety of digital assets while generating yield through multiple financial strategies. All information is presented in an objective manner without promotional language or subjective commentary. [1] [2] [3] [4] [5] [6] [9] [10]
In June 2025, Falcon Finance announced an integration with BitGo to provide secure custody support for its overcollateralized synthetic dollar, USDf. This partnership aimed to extend Falcon Finance’s access to regulated infrastructure and prepare the groundwork for future features, including token listing and staking.
BitGo, described as a leading qualified custodian for digital assets, began the process of onboarding USDf to its custody platform. Once the integration is live, institutional users will be able to hold USDf within BitGo wallets, streamlining access to Falcon’s ecosystem.
USDf is minted by depositing approved collateral, including USD1, a fiat-backed stablecoin issued by World Liberty Financial. USD1’s reserves, composed of short-term U.S. Treasuries and dollar deposits, are held in custody by BitGo, creating a clear and auditable flow from fiat reserve to synthetic dollar issuance.
Andrei Grachev, Managing Partner at Falcon Finance, stated that the integration reflects the growing alignment between synthetic dollar protocols and regulated digital asset infrastructure. Mike Belshe, CEO and Co-founder of BitGo, commented that integrating USDf into their qualified custody platform enables institutional clients to interact with a new class of digital dollars without compromising on compliance or operational integrity. Once USDf custody is live, Falcon and BitGo plan to expand support to include USDf staking, allowing users to stake USDf into sUSDf vaults via the ERC-4626 standard. Additionally, they will introduce fiat settlement, enabling seamless fiat transfers and on