Falcon Finance Establishes Onchain Insurance Fund with Initial $10 Million Contribution

Aug 28 2025 crypto


Dubai, UAE, August 28th, 2025, Chainwire Falcon Finance announced the establishment of its dedicated onchain insurance fund today, a structural safeguard designed to enhance transparency, strengthen risk management, and provide protection for counterparties and institutional partners engaging with the protocol. The fund has been established with an initial $10 million contribution in USD1, which Falcon Finance has selected as its first reserve currency, with additional assets to follow. In addition, a portion of protocol fees will be directed into the insurance fund, ensuring that the fund’s expansion alongside Falcon’s ecosystem continues to provide sustainable, long-term protection. The Falcon Finance’s Insurance Fund operates as a financial buffer designed to protect the protocol and its users during periods of stress. It is structured to mitigate rare instances of negative yields and, when necessary, can act as the last-resort bidder for USDf in open markets to support price stability. In exceptional scenarios, Falcon Finance may also deploy additional reserves to reinforce the system’s resilience. By holding stablecoin reserves, the fund provides multiple layers of protection, such as offsetting unforeseen risks, compensating for potential losses, and ensuring that sUSDf yield commitments are met even under adverse conditions. With this Insurance Fund, Falcon provides a verifiable layer of resilience and accountability, which offers institutional users confidence that their engagement with Falcon is supported by onchain insurance safeguards. This announcement follows a series of landmark achievements in recent months. Earlier this summer, World Liberty Financial (WLFI) made a strategic investment in Falcon Finance , accelerating technical integrations between USDf and USD1 and validating Falcon’s role as a partner of choice in stablecoin development. Just two weeks ago, Falcon unveiled its 18-month strategic roadmap , highlighting its transformation into a full-service financial institution that connects traditional banking and decentralized finance. That announcement also celebrated Falcon’s milestone of surpassing $1 billion in USDf circulating supply , recognition as a top 10 stablecoin across all chains , and an overcollateralization audit from ht.digital, which is further proof of Falcon Finance’s rigorous approach to compliance and transparent risk management. These advances build on Falcon’s recent achievements, such as completing the industry’s first live mint of USDf against Superstate’s tokenized U.S. Treasury fund and introducing weekly proof-of-reserves attestations. Together, they establish Falcon as a platform where sustainable yield generation, composable liquidity, and institutional-grade safeguards converge. The introduction of the onchain insurance fund is a natural continuation of this mission and a visible demonstration of confidence in Falcon’s infrastructure. Andrei Grachev, Managing Partner of Falcon Finance, commented: “Establishing this Insurance Fund is about embedding resilience at the core of our infrastructure. We are demonstrating that trusted, verifiable assets can provide the foundation for onchain insurance. This marks the next phase in Falcon’s mission to align transparency, compliance, and sustainable yield for institutions globally.” With the establishment of this Insurance Fund alongside Falcon Finance’s rapidly expanding roadmap of fiat corridors, multi-chain deployments, and real-world asset tokenization, the company continues to position itself as the infrastructure layer that connects capital, collateral, and utility across the global financial system. About Falcon Finance Falcon Finance is building a universal collateral infrastructure that turns any custody-ready asset, including digital assets, currency-backed tokens, and tokenized real-world assets, into USD-pegged onchain liquidity. By bridging onchain and offchain financial systems, Falcon gives institutions, protocols, and capital allocators a simple way to unlock stable and yield-generating liquidity from the assets they already hold. Learn more: https://falcon.finance/ About World Liberty Financial World Liberty Financial (WLFI) is a pioneering decentralized finance (DeFi) protocol and governance platform inspired by the vision of President Donald J. Trump. WLFI develops transparent, secure, and accessible financial tools, including institutional-grade products designed to broaden participation in decentralized finance. For more information, visit https://www.worldlibertyfinancial.com/ ContactManaging PartnerAndrei GrachevFalcon [email protected] Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

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