Details of the pilot project in the UAE
The gold redemption service in the UAE, launched in September 2025, adopts an 'on-chain application - offline withdrawal' model: users initiate redemption requests on the FalconFinance platform, after which the smart contract locks the corresponding USDf and generates a withdrawal certificate from the custodian. With this certificate, LBMA-certified gold bars can be withdrawn within 48 hours. The redemption threshold is set at 1000 USDf (approximately 1 gram of gold), processing 12,000 requests in the first month, with a transaction volume of 20 million USD, predominantly involving small and medium-sized business owners and high-net-worth individuals.
The core value of model innovation
The gold exchange service has achieved three breakthroughs: first, it addresses the concerns of stablecoins 'decoupling', with physical asset backing ensuring that USDf maintains a 1:1 peg during fluctuations in the cryptocurrency market; second, it expands application scenarios, extending from a medium of exchange to an asset reserve tool; third, it attracts traditional funds to enter the market, with 30% of redeeming users being gold investors who are new to cryptocurrency assets. This model also lowers the investment threshold for gold, where traditional physical gold investments typically start at 10 grams, while USDf exchanges have no minimum limit.
Challenges and Responses of Scaled Expansion
The expansion plan for 2026 faces two major tests: first, warehousing and logistics costs, with gold storage needing to connect to a global custody network, estimated to account for 3% of initial costs; second, cross-regional compliance, as different countries have significant regulatory differences regarding the circulation of precious metals. In response, the project party plans to collaborate with banks such as HSBC and Standard Chartered to share warehousing resources, while also hiring a localized compliance team to advance regional license applications, aiming to cover services in 20 cities by the end of 2026.
#falconfinanc @Falcon Finance $FF
