Falcon Finance has secured a $10 million strategic investment from M2 Capital to advance its universal collateral infrastructure for onchain liquidity and returns.
The UAE’s M2 Group is leading a $10 million investment in Falcon Finance’s Universal Collateral Model
BVI – Falcon Finance, a decentralized finance (DeFi) protocol focused on universal collateral infrastructure, has announced a $10 million strategic investment from M2 Capital Limited, the proprietary investment arm of UAE-based M2 Group. Cypher Capital, another UAE venture capital firm known for backing blockchain infrastructure projects, also participated in the round.
The funding marks an important milestone in Falcon’s mission to improve stability and capital efficiency in the DeFi ecosystem. The Falcon Protocol recently surpassed $1.6 billion in USDf circulation, making it one of the top ten stablecoins by market capitalization.
Falcon has also established a $10 million onchain insurance fund, with protocol fees, to protect users and maintain return commitments during volatile market conditions. In a groundbreaking step, the company completed the first live coin of USDf against tokenized US Treasuries, linking DeFi liquidity to real-world assets (RWAs).
The protocol continues to expand USDf’s presence on DeFi platforms, including perpetual exchanges, real-world asset platforms, and yield markets. With support for Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Proof of Reserve, Falcon provides real-time transparency to ensure USDf remains fully overcollateralized.
According to James Greenwood, CEO of M2 Group, the investment reflects M2’s confidence in Falcon’s model of resilient, transparent infrastructure that bridges traditional and digital finance.
Andrei Grachev, founder of Falcon Finance, said the partnership with M2 will accelerate Falcon’s roadmap, improve fiat corridors and strengthen ecosystem resilience.
đź’ˇFrequently asked questions
What is Falcon Finance?Falcon Finance is building a universal collateral infrastructure that converts custodial assets into USD-pegged onchain liquidity.
Who invested in Falcon Finance?M2 Capital Limited led the $10 million round, with participation from Cypher Capital.
What is USDf?USDf is Falcon Finance’s synthetic stablecoin, backed by tokenized and collateralized assets.
How will Falcon use the funding?Falcon plans to expand fiat entry points, deepen partnerships and increase the resilience of its collateral model.
