Falcon Finance, the first universal collateralization infrastructure powering onchain liquidity and yield, has integrated Tether Gold (XAUt), the largest and most liquid gold-backed token, as collateral for minting USDf. This collaboration introduces the world’s most time-tested asset into Falcon’s diversified collateral ecosystem, enabling users to gain exposure to gold’s store-of-value properties while earning sustainable, DeFi-native yield.
The introduction of XAUt marks a significant milestone for real-world assets (RWAs), bringing one of the world’s oldest and most trusted stores of value into Falcon’s onchain collateral ecosystem. It highlights the growing convergence of traditional finance and decentralized finance (DeFi) through tokenized assets, giving users access to yield-generating liquidity backed by tangible value.
With gold’s global market capitalization estimated at around $27 trillion and more than $3 billion already tokenized onchain, Falcon’s integration of XAUt will unlock new avenues for the utilization of this precious metal. This move extends the utility of tokenized gold, enhances portfolio diversification, and enables users to leverage the world’s most precious store of value as stablecoin collateral.
Quotes and Perspectives
Integrating Tether Gold as collateral represents a key step in our roadmap to expand USDf’s adoption and bridge the gap between traditional assets and onchain liquidity. Gold has always been a cornerstone of global finance, and bringing it onchain through XAUt aligns with our mission to create universal, yield-generating infrastructure for all forms of value.
By transforming physical gold into a tokenized equivalent, Tether Gold has engineered a real-world asset that enables 24/7 trading, deep liquidity, and fractional ownership combined with secure custodianship. This enables investors to hold and trade verifiable gold in digital format and to use it as a yield-bearing asset.
Impact on Falcon Finance and USDf
Falcon Finance’s synthetic dollar, USDf, has grown to over $2.1 billion in supply, backed by more than $2.3 billion in reserves as of the latest attestation cycle. The integration of XAUt will further increase Total Value Locked (TVL) while empowering more users to access sustainable yield through sUSDf. In the process, it will transform gold into productive collateral, advancing Falcon’s mission to build the infrastructure for universal asset collateralization.
About Falcon Finance
Falcon Finance is building a universal collateral infrastructure that turns any liquid asset, including digital assets, currency-backed tokens, and tokenized real-world assets, into USD-pegged onchain liquidity. By bridging onchain and offchain financial systems, Falcon gives institutions, protocols, and capital allocators a simple way to unlock stable and yield-generating liquidity from the assets they already hold.
Learn more at https://falcon.finance/.