Falcon Finance Merges $27T Gold with DeFi to Broaden Onchain Yield Access

Falcon Finance, a leading provider of onchain liquidity and yield infrastructure, has announced the integration of Tether Gold (XAUt) as collateral for its USDf stablecoin in a Falcon Finance announcement. This move marks a significant step in bridging traditional finance with decentralized finance (DeFi) by leveraging tokenized real-world assets (RWAs). The collaboration enables users to utilize XAUt, a gold-backed token, as collateral to mint USDf, a synthetic dollar designed to generate yield.

The integration introduces gold — a time-tested store of value — into Falcon's collateral ecosystem, which already supports diverse assets including digital tokens and tokenized RWAs. With gold's global market capitalization estimated at $27 trillion and over $3 billion already tokenized onchain, the partnership aims to expand the utility of gold in DeFi. Users can now access the stability of gold while earning DeFi-native yields through sUSDf, Falcon's yield-bearing version of USDf, according to a TheStreet press release.

Andrei Grachev, Founding Partner at Falcon Finance, emphasized the strategic importance of the move: "Integrating Tether Gold as collateral represents a key step in our roadmap to expand USDf's adoption and bridge the gap between traditional assets and onchain liquidity. Gold has always been a cornerstone of global finance, and bringing it onchain through XAUt aligns with our mission to create universal, yield-generating infrastructure for all forms of value," the Falcon Finance announcement noted.

Tether Gold, which represents fractional ownership of physical gold, offers 24/7 trading, deep liquidity, and secure custodianship. By tokenizing gold, the asset becomes accessible to a broader audience, enabling fractional ownership and programmable use cases in DeFi protocols. Falcon's USDf stablecoin, which has grown to over $2.1 billion in supply, is backed by $2.3 billion in reserves. The addition of XAUt is expected to further increase total value locked (TVL) on the platform while diversifying collateral options for users, according to a Phemex article.

The partnership underscores the growing convergence of traditional assets and DeFi. As institutions and retail investors seek ways to combine the tangibility of physical assets with the innovation of blockchain, tokenized gold emerges as a compelling hybrid. Falcon Finance's universal collateral infrastructure now supports a broader spectrum of assets, from digital tokens to real-world commodities, fostering greater interoperability between onchain and offchain financial systems.