M2 Capital invests $10 million in Falcon Finance for DeFi expansion

Published 09/10/2025, 14:04
© Jakub Porzycki via Reuters Connect

Investing.com -- Falcon Finance secured a $10 million strategic investment from M2 Capital Limited, the investment arm of UAE-based M2 Group, with additional participation from Cypher Capital.

The funding comes as Falcon Finance, which provides universal collateralization infrastructure for onchain liquidity and yield, experiences significant growth.

The protocol has reached over $1.6 billion in USDf circulation, positioning it among the top ten stablecoins by market capitalization.

“Partnering with M2 reflects how far Falcon Finance has come,” Andrei Grachev, Founding Partner at Falcon Finance, told Investing.com.

“We have scaled past one billion USDf in circulation, advanced on-chain insurance models, and connected DeFi with real-world assets."

Falcon Finance recently established a $10 million on-chain insurance fund using protocol fees to protect users and secure yield obligations during market stress. The company also completed the first live mint of USDf against tokenized U.S. Treasuries, connecting decentralized finance liquidity with real-world assets.

"With M2’s backing, we are moving faster toward our goal, which is to build resilient, compliant infrastructure for a more open financial system,” Grachev added.

The protocol has expanded USDf utility through new exchange listings and integrations across various DeFi platforms, including perpetuals and real-world asset trading venues. Falcon utilizes Chainlink’s Cross-Chain Interoperability Protocol and Proof of Reserve to verify that USDf remains fully overcollateralized.

With this new investment, Falcon Finance plans to accelerate its global expansion by developing fiat corridors, strengthening ecosystem partnerships, and enhancing its universal collateralization model.

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