TL;DR
- Falcon Finance integrated KGST, the Kyrgyzstan government-backed stablecoin, as eligible collateral to mint USDf.
- As of September 30, USDf supply reached $1.21 billion with total reserves of $1.90 billion and a backing ratio of 156.47%.
- BTC leads reserve composition with 64.38% (~$1.22 billion). sUSDf delivers an annual yield of 4.21%.
Falcon Finance incorporated a local currency stablecoin as valid collateral to mint its synthetic dollar USDf, marking a significant shift in the protocol’s expansion strategy.
On September 15, KGST, the stablecoin pegged to the Kyrgyzstani som and issued by KGSToken LLC as a BEP-20 token on BNB Chain, was enabled to mint USDf through Classic Mint. KGS reserves are held in licensed Kyrgyz banks under local virtual asset legislation.
This connects local currency value with dollar-denominated liquidity within the protocol’s ecosystem. KGST holders can post their tokens as collateral and mint USDf directly from app.falcon.finance, without needing to convert to another currency first.
Collateral Strengthening and Composition in Falcon
At month’s end, the USDf supply stood at $1.21 billion, with $57.39 million in sUSDf. Total reserves amount to $1.90 billion, raising the backing ratio from the 141.6% recorded on August 31 to 156.47%. BTC dominates reserve composition with 64.38%, followed by enzoBTC at 18.28% and mBTC at 13.93%. sUSDf trades at $1.1366 per unit and delivers an annual yield of 4.21%, backed by a $10 million insurance fund.
On another front, fUSD continues to operate as an institutional rail. Issued by Anchorage Digital Bank, N.A., the instrument is designed in line with the GENIUS Act framework, with reserves in cash, short-term Treasury bonds and Treasury-backed repurchase agreements. Qualified institutions can use it as trading collateral through Ceffu’s MirrorRSV and access a Falcon rewards program targeting an approximate yield of 3% annually.
On September 29, during Korea Blockchain Week, Falcon celebrated the first anniversary of the FF TGE at the DWF Labs Haus space in Seoul. Chief RWA Officer Artem Tolkachev also presented at EBC12 in Barcelona on the real conditions a tokenized asset must meet to function as collateral under stress: settlement speed, token utility, and the soundness of custody and redemption terms.
