M2 Capital's $10M Boost Bridges DeFi and Real-World Assets via Falcon's USDf

Falcon Finance, a decentralized finance (DeFi) protocol specializing in universal collateralization infrastructure, has secured a $10 million strategic investment from M2 Capital, the proprietary investment arm of UAE-based M2 Group. The funding round also included participation from Cypher Capital, a UAE-focused venture firm. This investment accelerates Falcon's mission to enhance stability and capital efficiency in synthetic dollar protocols, particularly its USDf stablecoin, which has surpassed $1.6 billion in circulation, placing it among the top ten stablecoins by market capitalization .

The funding follows significant operational milestones for Falcon Finance. The protocol recently established a $10 million on-chain insurance fund, seeded with protocol fees, to mitigate risks during market volatility and safeguard yield obligations. Additionally, Falcon completed the industry's first live mint of USDf against tokenized U.S. Treasuries, bridging DeFi liquidity with real-world assets (RWAs) and advancing institutional-grade integration into decentralized ecosystems . The protocol's infrastructure is further supported by Chainlink's Cross-Chain Interoperability Protocol (CCIP) and Proof of Reserve, ensuring real-time verification of USDf's full overcollateralization .

With M2 Capital's backing, Falcon Finance plans to expand its global roadmap, prioritizing fiat on- and off-ramps in Latin America, Turkey, MENA, Europe, and the U.S. The firm also aims to deepen ecosystem partnerships and enhance the resilience of its universal collateralization model. James Greenwood, CEO of M2 Group, emphasized that Falcon's innovations align with M2's strategy to combine "resilient, transparent infrastructure with pioneering products" to serve institutional and high-net-worth clients . Andrei Grachev, Falcon's Founding Partner, noted that the partnership validates the protocol's progress in scaling USDf circulation, pioneering on-chain insurance, and connecting DeFi with RWAs .

The investment underscores growing institutional interest in DeFi protocols that integrate traditional financial instruments. Falcon's USDf has expanded its utility through new exchange listings and integrations across DeFi platforms, including perpetual trading and yield markets. The protocol's risk framework, which includes dynamic collateralization ratios and liquidity safeguards, ensures stability amid market fluctuations .

M2 Group's involvement brings regulatory credibility, as its entities are licensed by the Financial Services Regulatory Authority (ADGM) and the Securities Commission of The Bahamas (SCB). The firm's focus on secure, regulated digital asset solutions complements Falcon's mission to deliver institutional-grade infrastructure in the DeFi space .

[1] M2 and Cypher Invest $10M in Falcon Finance to Accelerate Growth (https://falcon.finance/news/m2-capital-and-cypher-capital-invest-10m-in-falcon-finance-to-accelerate-universal-collateralization-infrastructure)

[2] M2 Invests $10M in Falcon Finance to Accelerate Universal Collateralization Infrastructure (https://explore.m2.com/newsroom/m2-invests-10m-in-falcon-finance-to-accelerate-universal-collateralization-infrastructure)

[3] M2 Capital Invests $10 Million in Falcon Finance for DeFi Expansion (https://www.investing.com/news/cryptocurrency-news/m2-capital-invests-10-million-in-falcon-finance-for-defi-expansion-4279630)

[4] M2 Invests $10M in Falcon Finance to Accelerate Universal Collateralization Infrastructure (https://chainwire.org/2025/10/09/m2-invests-10m-in-falcon-finance-to-accelerate-universal-collateralization-infrastructure/)