Falcon's current model involves minting overcollateralized USDf and staking it in sUSDf for yield. The 2026 plan adds a specialized engine for tokenizing real-world assets (RWAs) like treasuries, corporate bonds, and private credit as primary collateral.
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This modular approach acknowledges that different asset classes have unique needs in custody, pricing, redemption, risk, and legal compliance. Falcon's RWA engine aims to integrate these as separate modules, allowing the protocol to add new collateral types without system-wide changes. This enables tokenized assets to actively function within on-chain finance.
This shift allows for disciplined diversification. A synthetic dollar reliant solely on crypto yields faces the same market cycles as others. Falcon plans to incorporate short-duration, yield-bearing RWAs and credit instruments to make collateral more stable and strategies more lasting.
If successful, this will create on-chain liquidity backed by real-world cash flows by 2026. Treasuries offer a stable base, bonds provide structured credit, and private credit, if managed carefully, links yield to productive activity, requiring strict standards for origination, transparency, and enforceability. Falcon's plan includes deeper TradFi partnerships and more institutional USDf options.
Ultimately, Falcon aims to integrate RWAs into DeFi as usable collateral composable, risk-assessed, and redeemable without disrupting the on-chain experience. The modular engine's purpose is not just more assets, but more dependable financial operations across different asset types.
