Falcon Finance Integrates $27 Trillion Gold Market into DeFi, Expanding Onchain Yield Opportunities

Falcon Finance, a prominent platform specializing in onchain liquidity and yield solutions, has revealed the addition of

Gold (XAUt) as a collateral asset for its USDf stablecoin, according to a . This development represents a major advancement in connecting traditional financial systems with decentralized finance (DeFi) by utilizing tokenized real-world assets (RWAs). Through this partnership, users are now able to use XAUt, a token backed by gold, as collateral to issue USDf, a synthetic dollar designed to provide yield opportunities.

This integration brings gold—a historically reliable store of value—into Falcon’s collateral framework, which already accommodates a range of assets such as digital tokens and tokenized RWAs. With the global gold market valued at approximately $27 trillion and more than $3 billion already tokenized onchain, this collaboration seeks to broaden gold’s role within DeFi. Users can benefit from gold’s stability while earning DeFi-native returns via sUSDf, Falcon’s yield-generating variant of USDf, as detailed in a

.

Andrei Grachev, a Founding Partner at

, highlighted the strategic value of this initiative: “Bringing Tether Gold into our collateral pool is a pivotal move in our strategy to drive USDf adoption and connect traditional assets with onchain liquidity. Gold has long been fundamental to global finance, and tokenizing it through XAUt supports our vision of building a universal, yield-focused infrastructure for all asset types,” the Falcon Finance announcement stated.

Tether Gold, which grants fractional ownership of physical gold, provides round-the-clock trading, robust liquidity, and secure storage. Tokenizing gold makes the asset more accessible, allowing for fractional ownership and programmable applications within DeFi platforms. Falcon’s USDf stablecoin, now exceeding $2.1 billion in circulation, is supported by $2.3 billion in reserves. The inclusion of XAUt is anticipated to further boost the platform’s total value locked (TVL) and offer users a wider range of collateral choices, as mentioned in a

.

This collaboration highlights the increasing integration of traditional assets with DeFi. As both institutional and individual investors look for ways to blend the security of tangible assets with blockchain innovation, tokenized gold stands out as a promising solution. Falcon Finance’s universal collateral system now accommodates an even broader array of assets, from digital tokens to physical commodities, enhancing the synergy between onchain and traditional financial ecosystems.