Falcon Finance, a digital asset platform focused on stablecoins, has launched a $10m onchain insurance fund to bolster transparency and risk management while protecting institutional partners using its protocol.
The fund, which begins with a $10m contribution in USD1, will also be supplemented by protocol fees and additional assets over time, according to FF News.
Falcon said this mechanism ensures the fund expands alongside the company’s ecosystem, providing sustainable long-term protection.
The insurance pool is designed to act as a buffer during periods of stress, offsetting potential losses and meeting yield commitments even under difficult conditions. It can also act as a backstop for USDf in open markets, helping maintain stability in the token’s price.
This development comes as Falcon builds on a string of recent milestones. These include an investment from World Liberty Financial, surpassing $1bn in USDf supply, recognition as a top 10 stablecoin, and the release of an 18-month roadmap aimed at transforming the firm into a full-service financial institution.
Falcon Finance managing partner Andrei Grachev said, “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.”
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