Decentralized Finance (DeFi) platform, Falcon Finance has announced the launch of a $50 million ecosystem fund. In a Friday blog post, it confirmed the development, stating that the fund will support teams creating the next generation of structured yield products and infrastructure that enable tokenized U.S. Treasuries, gold, and other real-world assets (RWA) to be used as reusable collateral.
The blog post further explained that the fund will also be used to back projects in three key areas. These areas include fixed income and Treasury-based products, tokenized RWA protocols, and precious metals like gold, silver, and platinum, which are also essential for institutional-grade yield strategies built on Falcon’s Universal Collateral Layer.
More details on the Falcon Finance ecosystem fund
This fund is structured as a combination of capital and incentives, with 50% allocated as capital and 50% in vested FF tokens. It also aims to support teams whose products boost demand, circulation, and composability of Falcon’s collateral primitive, including USDf. Examples include teams developing yield infrastructure, RWA integrations, and structured products using USDf as a base layer.
Over the years, tokenized real-world assets, especially in U.S. Treasuries and private credit, have seen rapid growth. However, much of this collateral remains underused because yield products are fragmented by asset type and platform.
The Falcon Finance fund also aims to accelerate infrastructure development that makes tokenized collateral more versatile across different products and platforms in institutional settings. The platform also connects various collateral types, including major digital assets and tokenized instruments such as gold, equities, and sovereign bonds. This in turn forms a unified collateral layer to support more stable, structured yields. Currently, Falcon Finance manages over $2.5 billion in total value locked and has supplied $2.1 billion in USDf.
Andrei Grachev, Founding Partner of Falcon Finance has shared his insight on the development. He noted that the synthetic dollar market has demonstrated the model’s success and grown into the billions. He also added that the next phase involves universal collateral—covering treasuries, gold, equities, and sovereign bonds—generating yields through the same infrastructure. Grachev concluded by saying Falcon Finance plans to support innovators who see the future and know how to navigate it.
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