Falcon Converts Gold from a Dormant Asset into a DeFi Yield Generator

Falcon Finance, a prominent platform specializing in universal collateralization infrastructure, has incorporated

Gold (XAUt)—a gold-backed tokenized asset—as eligible collateral for issuing its synthetic stablecoin, USDf. Announced on October 27, this initiative represents a major advancement in connecting traditional finance with decentralized finance (DeFi) by utilizing real-world assets (RWAs) to produce yield. XAUt, which stands as the most substantial and liquid gold-backed token with over $3 billion in tokenized gold onchain, now allows users to benefit from gold’s value retention while also earning DeFi-based incentives.

This integration brings gold—a global market valued at $27 trillion—into Falcon’s diverse collateral framework, improving risk diversification and broadening the practical use of tokenized assets. With XAUt now accepted as collateral,

users are able to turn gold into an income-generating asset, shifting it from a static reserve to a productive resource. Andrei Grachev, a Founding Partner at Falcon Finance, stated that this move supports the platform’s vision to deliver “universal, yield-generating infrastructure for all types of value” and to connect traditional assets with onchain liquidity.

USDf, Falcon Finance’s stablecoin, has surpassed $2.1 billion in circulation, supported by reserves exceeding $2.3 billion as confirmed in the latest attestation. The integration of XAUt is anticipated to further boost the platform’s total value locked (TVL) and enable users to earn consistent returns through sUSDf, the staked version of the stablecoin. This milestone also highlights the increasing overlap between DeFi and traditional finance, as tokenized assets like XAUt offer continuous trading, fractionalized ownership, and secure storage solutions.

The collaboration with Tether, which issues XAUt, underscores the growing significance of RWAs within DeFi. The addition of Tether Gold reflects a wider movement of institutional engagement in tokenized assets, with crypto startups raising $99.6 million just this week, pushing 2025’s total fundraising close to $22 billion, according to an

. Falcon Finance’s strategy is in line with forecasts from industry leaders such as Mike Giampapa of Galaxy Ventures, who observed that blockchain-powered financial systems are “fortifying” themselves against market volatility while sustaining long-term growth.

Importantly, this integration meets the demand for a broader range of collateral options in DeFi. Falcon Finance’s platform now accommodates various asset types, including digital currencies, fiat-backed tokens, and RWAs, allowing institutions and protocols to unlock liquidity from their current assets. This approach positions Falcon to compete in a fast-changing sector, where traditional firms like Blackstone Secured Lending are also adapting to yield challenges and macroeconomic trends, as noted in a

.