Falcon Finance, the first universal collateralization infrastructure in decentralized finance (DeFi), has announced a $10 million strategic investment from M2 Capital Limited (M2 Capital) and Cypher Capital. The funding comes as Falcon positions itself at the forefront of stablecoin innovation and capital efficiency.

The announcement coincides with Falcon’s rapid growth: the protocol recently surpassed $1.6 billion in USDf circulation, ranking it among the top ten stablecoins by market capitalization. Falcon has also established a $10 million on-chain insurance fund, seeded with protocol fees, designed to safeguard user funds and yield obligations in periods of market stress.

Bridging DeFi and Real-World Assets

Falcon Finance achieved a milestone by completing the industry’s first live mint of USDf against tokenized U.S. Treasuries, marking a significant step toward integrating institutional-grade instruments into DeFi. The protocol also expanded USDf’s reach via new exchange listings and DeFi integrations, covering perpetuals, yield markets, and real-world asset trading venues.

Using Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Proof of Reserve, Falcon ensures real-time verification of full USDf overcollateralization, reinforcing transparency and trust in its synthetic dollar ecosystem.

Fueling Global Expansion and Resilience

The investment from M2 Capital and Cypher Capital will accelerate Falcon’s global roadmap, focusing on expanding fiat corridors, deepening ecosystem partnerships, and enhancing the resilience of its universal collateralization model.

James Greenwood, CEO of M2 Group, commented, “Falcon’s universal collateralization model and synthetic dollar protocol are precisely the kind of innovations that enable institutional and high-net-worth clients to access digital asset markets with confidence, liquidity, and real-world integration.”

Andrei Grachev, Founding Partner at Falcon Finance, added, “This partnership with M2 marks a new chapter for Falcon Finance. With M2’s support, we are accelerating toward our vision of building the most resilient and inclusive financial infrastructure in the digital economy.”

With this funding, Falcon Finance aims to continue redefining stability and capital efficiency in DeFi, bridging the gap between decentralized systems and traditional financial markets.