Falcon Finance, a force in universal collateralization infrastructure, has announced a strategic investment of $10 million from M2 Capital Limited. M2 Capital is the proprietary investment arm of M2 Group, a diversified conglomerate headquartered in the UAE, which specializes in digital asset solutions and financial innovation.
This investment marks a significant step in Falcon’s journey to redefine stability and capital efficiency within the decentralized finance (DeFi) sector.
This funding round also attracted participation from Cypher Capital, a prominent multi-strategy investment firm based in the UAE. Cypher Capital is known for its support of impactful blockchain infrastructure projects, further validating Falcon’s potential and its innovative approach in the DeFi space.
The investment arrives during a period of impressive growth for Falcon Finance. The protocol has recently surpassed a remarkable milestone of $1.6 billion in USDf (a stablecoin) circulation. This places USDf among the top ten stablecoins by market capitalization, showcasing its strong position in the market.
Falcon has also established a $10 million on-chain insurance fund, which is funded by fees generated from the protocol. This insurance fund serves as a protective buffer for users, helping to secure yield obligations during periods of market stress or volatility. The establishment of this fund reflects Falcon’s commitment to user security and financial stability.
Falcon also completed the industry’s first live mint of USDf backed by tokenized U.S. Treasuries. This achievement bridges decentralized finance liquidity with real-world assets, facilitating the integration of institutional-grade financial instruments into the decentralized ecosystem, a significant step towards legitimizing DeFi as a trustworthy alternative to traditional finance.
Falcon Finance has also been proactive in expanding the reach and utility of USDf. The protocol has secured new exchange listings and formed integrations across various DeFi platforms, enhancing its versatility. These integrations include perpetual trading, real-world asset trading venues, and various yield-making markets. To further bolster trust and transparency, Falcon is supported by Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Proof of Reserve, which provide real-time verification that USDf remains fully overcollateralized.
With the strategic investment from M2 Capital, Falcon Finance plans to accelerate its global expansion efforts. This includes a renewed focus on expanding fiat corridors to facilitate smoother transactions, deepening partnerships within the ecosystem, and enhancing the overall resilience of its universal collateralization model.
KEY QUOTES:
“This partnership with M2 marks a new chapter for Falcon Finance. It is a powerful endorsement of the progress we’ve made, from surpassing a billion USDf in circulation to pioneering on-chain insurance and bridging DeFi with real-world assets. With M2’s support, we are accelerating toward our vision of building the most resilient and inclusive financial infrastructure in the digital economy.”
Andrei Grachev, Founding Partner at Falcon Finance
“Our investment in Falcon Finance reflects M2’s conviction that the next era of digital assets will be defined by combining resilient, transparent infrastructure with pioneering products and investment opportunities. Falcon’s universal collateralization model and synthetic dollar protocol are precisely the kind of innovations that enable M2’s family office, institutional investor and high-net-worth clients to access digital asset markets with confidence, liquidity and real-world integration.”
James Greenwood, CEO of M2 Group
