Update We moved all funds away from CEXes, got attestation letter from the auditors that confirmed that New transparency page will go live this week, working on its structure Stay tuned
Trading Secrets
22-07-2025 14:27
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Falcon Finance withdraws all funds from CEXs amid push for stablecoin transparency
Stablecoins have remained in the limelight since Donald Trump signed the GENIUS Act into law.
Synthetic stablecoin protocol Falcon Finance is making headlines today as co-founder Andrei Grachev confirmed a bold transparency move.
Grachev has revealed that Falcon Finance has withdrawn all its funds from centralized exchanges.
Moreover, external auditors have confirmed the move, which reflects a shift in how stablecoin firms prioritise integrity.
The withdrawal comes as stablecoins attract attention as the United States adopts a friendly stance on digital currencies.
With analysts forecasting massive growth for dollar-backed tokens, transparency remains paramount for the success of the DeFi industry.
Stablecoins are the backbone of the crypto sector due to their resilience to wild market fluctuations.
Meanwhile, Falcon Finance’s decision underscores its commitment to ensuring transparency in the increasing TradiFi-DeFi integration.
To reinforce its dedication, Grachev announced an upcoming transparency page, scheduled for this week’s launch.
Institutions and users can utilise this page to monitor fund movements and reserve data in real-time.
This proactive approach will potentially build trust in an industry often plagued by hacking incidents.
$1.989 billion backing USDf
The latest update follows another milestone attained just 90 days ago.
Falcon Finance announced that its reserve assets hit a lucrative $1.989 billion.
That placed the synthetic stablecoin protocol among the top platforms boasting reserves that could even rival leading centralised stablecoin issuers.
Notably, the $1.989 billion figure reflects growth and increased trust in Falcon’s synthetic US dollar.
USDf maintains a 1:1 peg with the United States dollar.
It trades at $1.00 with a market capitalisation of $656 million.
The institutional impact
Institutions have perceived synthetic stablecoins as risky.
The occasional debacle of undercollateralized projects and lack of transparency in most protocols dented the DeFi sector.
For instance, Terra’s May 2022 collapse shocked the crypto industry as its assets Luna (LUNA) and TerraUSD (UST) lost 99% of their value within a week, with investors losing approximately $50 billion.
However, this trend might change following the latest stablecoin law, and Falcon Finance seems prepared to rewrite the narrative.
The exit from CEXs and the upcoming transparency portal demonstrate a platform creating a financial atmosphere where institutional participants can engage.
Falcon Finance is repositioning itself to serve an increasing number of companies entering the stablecoin market as transparency gains ground.
Integrity could see more companies converting their reserves into stablecoins, further strengthening the cryptocurrency industry.
Why USDf is different from giants like Tether’s USDT
Falcon’s synthetic stablecoin is under the radar compared to the likes of Tether’s USDT and Circle’s USDC.
While the fiat-pegged rely on government bonds or bank deposits for stability, USDf uses reserve logic and blockchain infrastructure for its backing.
While participants have viewed this synthetic model as risky, it is gaining traction amid soaring stablecoin adoption and a weakening US dollar.
The post Falcon Finance withdraws all funds from CEXs amid push for stablecoin transparency appeared first on Invezz
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23-07-2025 14:23
23-07-2025 14:23