The DeFi platform Falcon Finance has announced the integration of the Tether Gold (XAUT) stablecoin, which is backed by gold. Users can now use XAUT as collateral when creating the USDf stablecoin, opening new opportunities for earning yield based on this asset.
This is reported by Finway
The New Role of Tokenized Gold in DeFi
According to representatives of Falcon Finance, the implementation of XAUT into the platform’s ecosystem marks an important milestone in the development of tokenized real assets. The use of tokenized gold allows for not only accumulating value but also generating stable income directly on the blockchain. The company emphasizes that the integration of XAUT has demonstrated the convergence of traditional finance and the decentralized financial services sector.
“Gold has always been a cornerstone of the global financial system, and its integration into blockchain through XAUT aligns with our mission to create a universal infrastructure that generates income for all forms of value,” said Falcon Finance co-founder Andriy Hrachov.
He also stressed that this step will help expand the use cases for the USDf stablecoin and bridge the gap between traditional assets and liquidity on the blockchain.
Growth of the Tokenized Gold Market and Prospects for USDf
The global gold market recently surpassed $30 trillion, with over $3.7 billion already tokenized on blockchains. Falcon Finance highlights that the integration of XAUT makes gold accessible for diversifying investment portfolios and creating liquid collateral for stablecoins. Among the key advantages of tokenized gold, the company points out 24/7 trading, high liquidity, the possibility of fractional ownership, and secure asset storage.
The synthetic dollar USDf from Falcon Finance already has over $2.1 billion in circulation, and the project’s reserves exceed $2.3 billion according to the latest audit. The addition of XAUT as collateral is expected to further increase the value of locked assets and expand user access to earning yield through sUSDf, transforming gold into a productive asset in the DeFi space.
In July, Falcon Finance raised $10 million in investment from World Liberty Financial to further develop the platform and implement new financial products.