Falcon Finance Launches Onchain Insurance Fund with Initial $10M Contribution

• During times of high stress, the Falcon Finance Insurance Fund functions as a financial buffer that is meant to safeguard both the protocol and the people who use it.
• This announcement also celebrated Falcon’s achievement of surpassing $1 billion in USDf circulating supply, recognition as a top 10 stablecoin across all chains.
• Alongside the establishment of this Insurance Fund, Falcon Finance is continuing to position itself as the infrastructure layer that connects capital, collateral, and utility.

Today, Falcon Finance made the announcement that it will be establishing a dedicated onchain insurance fund. This fund is a structural safeguard that will be meant to improve transparency, boost risk management, and offer protection for counterparties and institutional partners that are interacting with the protocol. The fund was founded with an initial contribution of $10 million, which Falcon Finance has chosen to be its first reserve currency. Additional assets will be added to the fund after this first contribution. Additionally, a percentage of the fees associated with the protocol will be transferred into the insurance fund. This will ensure that the fund’s development, which will occur concurrently with the extension of Falcon’s ecosystem, will continue to provide resilient and long-term protection.

During times of high stress, the Falcon Finance Insurance Fund functions as a financial buffer that is meant to safeguard both the protocol and the people who use it. In the event that it is required, it may function as the last-resort bidder for USDf in open markets in order to maintain price stability. It is designed to reduce the amount of negative yields that occur in very rare cases. In extraordinary circumstances, Falcon Finance may also resort to the deployment of additional reserves in order to strengthen the system’s resilience. The fund offers numerous levels of safety by holding stablecoin reserves. These layers include mitigating risks that were not anticipated, compensating for possible losses, and guaranteeing that sUSDf yield pledges are fulfilled even when bad circumstances are present. Falcon delivers a verified layer of resilience and accountability via the usage of this Insurance Fund. This provides institutional users with the assurance that their interaction with Falcon is backed by onchain insurance measures.

After a string of significant accomplishments over the last several months, this announcement comes as a result. At the beginning of this summer, World Liberty Financial (WLFI) made a strategic investment in Falcon Finance. This investment accelerated the technological integrations between USDf and USD1, and also validated Falcon’s status as a partner of choice in the development of stablecoins. Falcon recently presented its 18-month strategic roadmap, which highlights the company’s metamorphosis into a full-service financial institution that links conventional banking with decentralized finance. This announcement was made only two weeks ago.

This announcement also celebrated Falcon’s achievement of surpassing $1 billion in USDf circulating supply, recognition as a top 10 stablecoin across all chains, and an overcollateralization audit from ht.digital, which is additional evidence of Falcon Finance’s stringent approach to compliance and transparent risk management. All of these accomplishments were celebrated in conjunction with the announcement.

Falcon has recently accomplished a number of noteworthy things, including the completion of the industry’s first live mint of USDf against Superstate’s tokenized U.S. Treasury fund and the introduction of weekly proof-of-reserves attestations. These advancements build upon those accomplishments. Collectively, they establish Falcon as a platform that converges on the development of sustainable yields, the availability of composable liquidity, and the protection of institutional guarantees. As a logical continuation of this purpose and a tangible statement of trust in Falcon’s infrastructure, the creation of the onchain insurance fund is a natural progression.

Andrei Grachev, Managing Partner of Falcon Finance, commented:

Alongside the establishment of this Insurance Fund, Falcon Finance is continuing to position itself as the infrastructure layer that connects capital, collateral, and utility across the global financial system. This is being accomplished through the rapidly expanding roadmap of fiat corridors, multi-chain deployments, and real-world asset tokenization that the company has laid out.

Falcon Finance is in the process of building a universal collateral infrastructure that has the capability to transform any custody-ready asset, such as digital assets, currency-backed tokens, and tokenized real-world assets, into onchain liquidity that is tied to the United States Dollar.

Falcon provides organisations, protocols, and capital allocators with a straightforward method to liberate reliable and yield-generating liquidity from the assets they currently own. This is accomplished by bridging the gap between onchain and offchain financial systems.

The vision of President Donald J. Trump served as the impetus for the development of World Liberty Financial (WLFI), a pioneering decentralized finance (DeFi) protocol or governance platform. Financial tools that are open, safe, and easily accessible are developed by WLFI. These tools include institutional-grade solutions that are intended to increase the number of people who participate in decentralized finance.