Falcon Finance, the synthetic dollar protocol behind $1.58 billion in circulating USDf supply, has partnered with Anchorage Digital Bank and custody platform Ceffu to launch fUSD, a regulated dollar stablecoin built specifically for institutional use.
The product is designed to solve a problem that has existed since stablecoins were invented. Approximately $320 billion in stablecoins currently circulates globally. The reserves backing them earn billions in yield every year. Almost none of that income reaches the institutions holding the tokens. It flows to the issuers instead.
fUSD is built to change that structure.
How It Works
Anchorage Digital Bank, which holds a federal OCC charter, issues fUSD and manages the reserves. The reserve composition consists of US Treasury securities, money market products, and cash equivalents, with monthly attestations provided by Deloitte for transparency.
The GENIUS Act framework, which is advancing through the Senate, prohibits stablecoin issuers from directly paying yield to holders. Falcon Finance has structured around this by distributing Treasury-backed returns to eligible institutional holders through a separate rewards programme targeting approximately 3% annually. Falcon puts its own balance sheet into the programme from day one.
The custody pathway runs through Ceffu’s MirrorRSV system, which allows institutions to use fUSD as exchange collateral while keeping the underlying assets in regulated off-exchange custody. This means trading exposure can be maintained at venue speed without moving assets out of institutional custody.
Who It Is Built For
fUSD is available on a whitelist basis to eligible institutional counterparties only. The intended use cases cover a specific segment of institutional finance:
- Corporate treasury desks seeking compliant yield on dollar holdings
- Proprietary trading firms needing cross-venue execution with regulated collateral
- Digital asset hedge funds optimising capital efficiency on pledged collateral
- OTC liquidity providers requiring bank-grade settlement infrastructure
- Prime brokerage operations managing margin and financing on transparent reserves
The product is deployed on both Ethereum mainnet and BNB Smart Chain.
fUSD Versus USDf
Falcon Finance now operates two distinct dollar products serving different markets. fUSD is the regulated institutional product issued by Anchorage Digital Bank with cash and Treasury backing and OCC oversight. USDf is the DeFi-optimised synthetic dollar built for institutional and retail participants within the broader DeFi ecosystem with protocol-native rewards and multi-asset reserve backing.
