Bitget App
Trade smarter
Tokenizing Tradition: Falcon Finance Blends the Reliability of Gold with Cutting-Edge DeFi Solutions

Tokenizing Tradition: Falcon Finance Blends the Reliability of Gold with Cutting-Edge DeFi Solutions

Bitget-RWA2025/10/27 13:32
By:Bitget-RWA

- Falcon Finance integrates Tether Gold (XAUt) as collateral for its synthetic dollar USDf, bridging traditional and DeFi markets. - The move enables 24/7 trading of tokenized gold, expanding its utility with fractional ownership and $2.3B in platform reserves. - Analysts highlight the integration's potential to accelerate institutional adoption of tokenized gold in yield-generating DeFi ecosystems. - Falcon's USDf now holds $2.1B supply, with XAUt expected to boost TVL while aligning with growing demand f

Falcon Finance, recognized for its innovative approach to onchain collateralization infrastructure, has now incorporated

Gold (XAUt)—the most prominent and liquid gold-backed token—into its platform as collateral for issuing its synthetic stablecoin, USDf, as revealed in a recent . This integration represents a major advancement in connecting traditional and decentralized finance (DeFi) by digitizing one of the oldest and most trusted assets. With this update, users can utilize XAUt, which is backed by physical gold, as collateral to earn returns through USDf, a stablecoin tied to the U.S. dollar.

Gold’s worldwide market value is estimated at $27 trillion, with over $3 billion already tokenized on blockchain networks, according to

. By adding XAUt, Falcon Finance seeks to broaden the use cases for tokenized gold, making it possible for users to own fractions, trade at any time, and benefit from secure storage. This move meets the rising interest in real-world assets (RWAs) within DeFi, where tangible assets like gold are increasingly used to support digital liquidity. USDf, Falcon Finance’s synthetic dollar, currently has a circulating supply exceeding $2.1 billion, backed by reserves of more than $2.3 billion. The inclusion of XAUt is anticipated to further increase the platform’s total value locked (TVL) and provide users with more diversified, income-generating options.

Tokenizing Tradition: Falcon Finance Blends the Reliability of Gold with Cutting-Edge DeFi Solutions image 0

Andrei Grachev, a Founding Partner at Falcon Finance, highlighted the strategic value of this integration. “Gold has long served as a foundation for global finance, and bringing it onto the blockchain with XAUt fits perfectly with our vision to build inclusive, yield-focused infrastructure for all assets,” he said. The partnership with Tether Gold, which converts physical gold into a digital asset, demonstrates Falcon’s dedication to expanding USDf’s reach and enabling a smooth transition between conventional and blockchain-based financial systems, as noted in a

.

This initiative mirrors a broader movement in DeFi, where tokenized assets are becoming more popular as they merge the reliability of traditional investments with the benefits of blockchain innovation. Falcon Finance now accepts a variety of collateral, including both digital tokens and tokenized real-world assets, positioning itself as a significant force in the changing DeFi environment. Experts suggest that this integration could speed up institutional interest in tokenized gold, especially as the appetite for diversified, yield-producing portfolios increases.

As decentralized finance evolves, the blending of traditional and blockchain-based financial systems is expected to deepen. Falcon Finance’s adoption of XAUt is a clear example of this trend, illustrating how established assets can be adapted to serve the needs of a digital-centric financial world.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.