Tokenized real-world assets are having a moment—and Falcon Finance just added rocket fuel to that trend. The DeFi collateralization platform has partnered with Backed, the tokenization pioneer behind xStocks, to make tokenized equities usable as yield-bearing collateral within decentralized finance.

It’s a first: traditional equities such as Tesla (TSLAx), Nvidia (NVDAx), MicroStrategy (MSTRx), S&P 500 (SPYx), and Circle (CRCLx) can now be deployed on Falcon to mint USDf, the platform’s overcollateralized synthetic dollar. In simple terms, investors can borrow stable liquidity while keeping exposure to real-world stocks—a tangible bridge between TradFi and DeFi.

Real Stocks, Real Custody, Real Utility

Unlike synthetic assets or CFDs, xStocks are fully backed by the corresponding equities held with regulated custodians. That means when you hold a tokenized Tesla share, it’s not a derivative—it’s a digital claim to a real share, wrapped in an ERC-20 or SPL token and transferable across chains.

This makes Falcon’s integration with Backed more than a novelty. It’s the first example of tokenized equities moving from passive storage to productive capital. The result? DeFi users can unlock yield or mint stablecoins without selling their equity exposure.

As Andrei Grachev, Founding Partner at Falcon Finance, put it:

“This partnership extends DeFi’s reach into the traditional financial economy. With xStocks, users can keep exposure to companies like Tesla or Nvidia while unlocking stable, yield-bearing liquidity.”

Chainlink-Powered Transparency

The integration also taps Chainlink oracles to track underlying stock prices and corporate actions in real time, ensuring that tokenized asset valuations remain transparent and accurate. The infrastructure allows xStocks to combine the regulatory assurance of real equities with the composability and liquidity of DeFi—something the market has long been chasing.

A Step Toward Active RWAs

David Henderson, Head of Growth at Backed Finance, described the move as a step beyond tokenization-as-storage:

“With xStocks, we’re not just bringing traditional finance onto blockchain rails, we’re building something new—tokenized equities that act as building blocks for the new economy.”

This partnership comes as Falcon’s USDf stablecoin continues its quiet climb. The token now boasts over $2.1 billion in supply, backed by $2.25 billion in reserves, verified weekly by HT Digital and audited quarterly under ISAE 3000 assurance standards. That level of transparency sets Falcon apart in a sector where proof-of-reserves is increasingly non-negotiable.

Why It Matters

The broader tokenized real-world asset (RWA) market has surged past $12 billion, but most of that capital sits idle in wrapped instruments or custodial vaults. Falcon and Backed’s collaboration changes that equation by turning tokenized equities into productive collateral—a long-sought capability for DeFi protocols seeking stability without relying solely on volatile crypto assets.

If this model scales, it could signal a new wave of capital efficiency in decentralized finance: regulated assets moving freely onchain while powering native liquidity, stablecoins, and yield generation.

For a financial system still straddling two worlds, Falcon and Backed’s partnership looks like a credible step toward making those worlds actually work together.