Bitcoin is fluctuating around $70,000, altcoins are showing a slight recovery, while the RWA (Real-World Asset) sector is quietly accelerating, especially projects that bring traditional stocks and gold to the blockchain. I noticed this recently while browsing Twitter.@Falcon Finance There hasn't been much interaction with @xStocksFi, but there's already discussion in the community about their asset integration, which makes me think this is an undervalued opportunity. Today, let's talk about this collaboration and why it could be a key step in truly "activating" TradeFi assets in DeFi.

First of all#FalconFinanceIn This project has focused on building a "universal collateral infrastructure" since last year, with its core product being USDf, an over-collateralized synthetic dollar stablecoin with a current circulating supply exceeding $2 billion. Users can use various crypto assets (blue-chips like BTC, ETH, and SOL, and even some altcoins) as collateral to mint USDf, and then pledge USDf to create sUSDf, thus enjoying institutional-level sustainable returns, currently around 8-9% annualized. Falcon's unique feature is that it doesn't just focus on crypto asset liquidity but actively expands towards RWA (Responsive Universal Asset Provider). Recently, they've integrated Tether Gold (XAUt) and xStocks tokenized stocks (such as TSLAx, NVDAx, and SPYx) as collateral. This means that your Tesla stock tokens or gold tokens are no longer dead money; they can be directly used to mint USDf and earn additional returns.

Take another look at xStocksFi. They are issued by BackedFi and have already launched over 50 tokenized US stocks and indices, ranging from Apple and Google to the S&P 500, covering it all. The biggest highlight of these xStocks is the 1:1 peg to real stocks, with the underlying assets custodied by regulated European entities and issued across multiple chains like Solana and Ethereum. The trading volume has exceeded $12 billion, with over 80,000 holders and AUM approaching $175 million. More importantly, xStocks are inherently DeFi-friendly. They can be swapped on Jupiter, provide liquidity on Raydium, borrowed on Kamino, and even traded on centralized exchanges like Bybit, Kraken, and Gate. Recently, Kraken directly acquired BackedFi, incorporating xStocks into its own system, which has elevated their compliance and liquidity to a new level.

The collaboration between these two projects is essentially a perfect complement of 'productivity and liquidity.' xStocks provide high-quality RWA assets, bringing the traditional stock market on-chain, but these tokenized stocks themselves are 'passive.' Holding them primarily means tracking stock price fluctuations without earning additional returns. Falcon perfectly addresses this issue: using xStocks as collateral, allowing users to mint USDf and then stake it for real returns. Simply put, you can use TSLAx as collateral, mint USDf, stake it as sUSDf, enjoying the stock price appreciation while also earning extra DeFi returns. This transforms traditional stocks from a 'hold and wait for appreciation' into a productive asset that generates cash flow.

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In the current market environment, this kind of integration is particularly meaningful. By 2025, the Federal Reserve's interest rate cut cycle is basically confirmed, and institutions’ interest in RWA is skyrocketing. BlackRock and Fidelity are pushing their own tokenized funds, with the total on-chain RWA scale exceeding $30 billion. However, many RWA projects are still stuck in the 'on-chain display' phase, with poor liquidity and limited utility. The combination of Falcon and xStocks directly turns stocks and gold into building blocks of DeFi: you can use them for lending, LP, participate in yield strategies like Pendle, and even use them across chains. Imagine, in the future, your uncle isn't receiving a stock certificate for his birthday, but rather an SPYx token, which he can directly use to earn yields on Falcon. This is the true 'internet-level capital market.'