A new player in the digital currency space is quickly gaining traction as Falcon Finance announces its USDf token has reached $350 million in circulation. This rapid growth, achieved just two weeks after its public launch, signals strong market interest in alternatives to traditional stablecoins.
Falcon Finance, backed by crypto investment firm DWF Labs, has created USDf as an “overcollateralized digital asset” – essentially a cryptocurrency designed to maintain a value equal to one US dollar, but with extra assets backing each token to provide additional security.
The company’s quick success builds on momentum from its closed testing phase, which had already accumulated over $200 million in total value locked (TVL) before the public launch. Users can now create, stake, and trade USDf on the Ethereum blockchain, with liquidity available on popular decentralized exchanges like Uniswap, Curve, and Balancer, as well as the centralized exchange Bitfinex.
“This achievement reflects both user confidence and market demand for secure, yield-generating digital dollars,” said Andrei Grachev, Managing Partner at Falcon Finance. “In surpassing $350 million, Falcon reinforces its role as a core building block for the future of programmable finance.”
Falcon marketing visual. Image credits: Chainwire.
Transparency appears to be a key focus for Falcon Finance, which recently launched a dedicated page showing users exactly what assets back the USDf token. This includes information about reserves held with institutional custodians through services like Fireblocks and Ceffu, trading positions on exchanges, and how assets are deployed across various protocols.
The company emphasizes security by storing most reserves in specialized wallets using Multi-Party Computation (MPC) technology, with quarterly third-party verification. Security audits from firms Zellic and Pashov Audit Group were released earlier this year, with more scheduled on a regular basis.
What sets USDf apart from some other dollar-pegged cryptocurrencies is its flexibility and yield-generating capabilities. Users can create USDf using various cryptocurrencies as collateral, including popular options like USDT, USDC, Ethereum, Bitcoin, Solana, TON, and NEAR.
Around 15% annual returns
When users stake their USDf (locking it up to support the network), they receive sUSDf in return – a yield-bearing asset currently offering approximately 15 percent annual returns. These returns can potentially be enhanced through special NFTs called “Boosted Yield NFTs.”
To encourage user participation, Falcon has also launched a rewards program called Falcon Miles, which gives points for activities like creating USDf, staking, and holding assets. This program is expected to expand to include additional activities as the ecosystem grows.
The company is now working on expanding to additional blockchains and adding support for more types of collateral, as it pursues its goal of building a robust foundation for synthetic digital dollars in the evolving world of decentralized finance.
For users looking for dollar-pegged assets with potential yield opportunities, Falcon Finance’s rapid growth suggests it may become an increasingly important option in the digital currency landscape.
Sources:
- Chainwire – https://chainwire.org/2025/05/15/falcon-finance-surpasses-350-million-in-usdf-circulating-supply/
