Falcon Finance, recognised as the first universal collateralisation infrastructure, has secured a $10 million strategic investment from M2 Capital Limited (M2 Capital), the proprietary investment arm of M2 Group, a UAE-based conglomerate with a diversified portfolio across digital asset solutions and financial innovation. The funding round also saw participation from Cypher Capital, a UAE-based multi-strategy investment firm known for supporting high-impact blockchain infrastructure ventures.
This latest investment represents a significant step forward in Falcon Finance’s ambition to transform stability and capital efficiency in the decentralised finance (DeFi) space.
The announcement comes amid a period of rapid expansion for Falcon. In recent months, the protocol surpassed $1.6 billion in USDf circulation, positioning it among the top ten stablecoins globally by market capitalisation. Additionally, the firm established a $10 million on-chain insurance fund, sourced from protocol fees, to protect users and uphold yield commitments during periods of market volatility.
In a further milestone, Falcon successfully executed the first live mint of USDf against tokenised U.S. Treasuries, a breakthrough linking DeFi liquidity with real-world assets and paving the way for greater integration of institutional-grade financial instruments into the decentralised ecosystem.
Falcon Finance has continued expanding the accessibility of USDf through new exchange listings and partnerships across DeFi markets, including perpetuals, real-world asset trading, and yield platforms. By leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Proof of Reserve, the protocol ensures real-time validation that USDf remains fully overcollateralised, a move designed to build transparency and user confidence.
With M2 Capital’s investment, Falcon plans to accelerate its global development roadmap, focusing on expanding fiat corridors, deepening ecosystem collaborations, and strengthening the resilience of its collateralisation model.
Commenting on the investment, James Greenwood, CEO of M2 Group said: “Our investment in Falcon Finance reflects M2’s conviction that the next era of digital assets will be defined by combining resilient, transparent infrastructure with pioneering products and investment opportunities. Falcon’s universal collateralization model and synthetic dollar protocol are precisely the kind of innovations that enable M2’s family office, institutional investor and high-net-worth clients to access digital asset markets with confidence, liquidity and real-world integration.”
“This partnership with M2 marks a new chapter for Falcon Finance,” added Andrei Grachev, Founding Partner at Falcon Finance. “It is a powerful endorsement of the progress we’ve made, from surpassing a billion USDf in circulation to pioneering on-chain insurance and bridging DeFi with real-world assets. With M2’s support, we are accelerating toward our vision of building the most resilient and inclusive financial infrastructure in the digital economy.”
