Revolution in the financial sector: Falcon Finance brings tokenized stocks to DeFi!

Revolution in the financial sector: Falcon Finance brings tokenized stocks to DeFi!

Falcon Finance, a company based in the British Virgin Islands, has entered into a significant partnership with Backed to integrate xStocks into its collateral structure. This integration enables the first real-world equity integration that converts tokenized stocks into yield-producing assets within decentralized finance (DeFi). According to news from Daily Hodl Falcon Finance users can mine USDf using compliance tokens known as xSTOCKs.

Supported assets include prominent stocks such as TSLAx (Tesla), NVDAx (NVIDIA), MSTRx (MicroStrategy), SPYx (S&P 500 ETF) and CRCLx (Circle). These xStocks are fully backed by the underlying stocks held at regulated custodian banks and provide users with direct economic access to real stocks. Additionally, xStocks are transferable as ERC-20 and SPL tokens, making them easier to use in various DeFi applications.

Expansion of collateral

The partnership between Falcon and Backed expands Falcon's range of supported collateral and allows users to borrow against xStocks without crypto collateral. This is an important step in combining the low volatility of real assets with the liquidity and composability of DeFi. Chainlink oracles play a pivotal role as they track the prices of underlying assets and corporate events to ensure accurate valuation.

Falcon Finance's synthetic dollar, USDf, is currently at over $2.1 billion in volume, supported by over $2.25 billion in reserves. These reserves are verified weekly and subject to quarterly ISAE 3000 audits. The growth of the market for tokenized real-world assets is remarkable, with a total value of $12 billion, with the majority emerging as passive instruments.

Bridge between traditional and decentralized finance

The collaboration between Falcon Finance and Backed aims to turn tokenized stocks into productive securities, bridging the traditional financial world and DeFi. Backed, founded in 2021, is known for issuing permissionless tokens that track publicly traded stocks and ETFs, with xStocks serving as its flagship product.

With the aim of creating a universal collateral infrastructure for onchain liquidity from various liquid assets, Falcon Finance is positioning itself as a pioneer in a rapidly growing sector. With this innovative power, tokenized real-world assets could soon play a central role in the DeFi ecosystem by opening up new opportunities for investors and users.