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M2 Invests $10M in Falcon Finance to Accelerate Universal Collateralization Infrastructure
Falcon Finance, the next-generation synthetic dollar protocol, today announced a comprehensive $10 million strategic investment from M2 Capital Limited (M2 Capital), the proprietary investment arm of M2 Group (M2), which is a UAE-headquartered conglomerate with a diversified portfolio in digital asset solutions. The partnership marks a major milestone in Falcon’s mission to redefine stability and capital efficiency in decentralized finance.
The investment comes at a time of rapid growth for Falcon Finance. In recent months, the protocol has surpassed $1.6 billion in USDf circulation, placing it among the top ten stablecoins by market capitalization. Falcon also established a $10 million on-chain insurance fund, seeded with protocol fees, to serve as a protective buffer for users and safeguard yield obligations in times of stress. In parallel, the team successfully completed the industry’s first live mint of USDf against tokenized U.S. Treasuries, bridging DeFi liquidity with real-world assets and advancing the integration of institutional-grade instruments into the decentralized ecosystem.
Falcon has also expanded the reach and utility of USDf through new exchange listings and integrations across DeFi protocols, from perpetuals and real-world asset trading venues to yield markets. Supported by Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Proof of Reserve, Falcon delivers real-time verification that USDf remains fully overcollateralized, further strengthening trust and transparency.
With M2 Capital’s investment, Falcon will accelerate its global roadmap, focusing on expanding fiat corridors, deepening ecosystem partnerships, and enhancing the resilience of its universal collateralization model.
Commenting on the investment, James Greenwood, CEO of M2, said: “Our investment in Falcon Finance reflects M2’s conviction that the next era of digital assets will be defined by combining resilient, transparent infrastructure with pioneering products and investment opportunities. Falcon’s universal collateralization model and synthetic dollar protocol are precisely the kind of innovations that enable M2’s family office, institutional investor, and high-net-worth clients to access digital asset markets with confidence, liquidity, and real-world integration.”
“This partnership with M2 marks a new chapter for Falcon Finance,” said Andrei Grachev, Founding Partner at Falcon Finance. “It is a powerful endorsement of the progress we’ve made, from surpassing a billion USDf in circulation to pioneering on-chain insurance and bridging DeFi with real-world assets. With M2’s support, we are accelerating toward our vision of building the most resilient and inclusive financial infrastructure in the digital economy.”
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