Falcon Finance Adds Tokenized Mexican CETES to Boost USDf Collateral

• CETES provide holders the opportunity to mint USDf without having to sell the underlying asset, while also providing users with access to regulated sovereign yields.
• This is Falcon’s first sovereign-yield asset that is not denominated in USD, and it represents a big step in globalizing its framework for multiple collaterals.
• The risk is diversified, the geographic footprint of Falcon’s collateral architecture is expanded, and actual sovereign instruments from countries other than the US are brought into the DeFi economy for the first time.

Through the incorporation of CETES, which is the tokenized representation of short-duration Mexican sovereign bills issued by Etherfuse, a real-world asset (RWA) tokenization platform, Falcon Finance, a universal collateralization layer that powers on-chain liquidity and yield generation, is expanding the USDf collateral base. This expansion is being accomplished through the integration of CETES. This is Falcon’s first sovereign-yield asset that is not denominated in USD, and it represents a big step in globalizing its framework for multiple collaterals.

Falcon’s collateral base is expanded outside the United States Treasury system with the help of CETES, which provides customers with access to on-chain liquidity while also providing them with exposure to sovereign yield in an emerging market. The risk is diversified, the geographic footprint of Falcon’s collateral architecture is expanded, and actual sovereign instruments from countries other than the United States are brought into the decentralized finance economy for the first time.

Etherfuse’s Stablebonds architecture is used to tokenize CETES. This architecture is a bankruptcy-remote, transparently structured instrument that is backed 1:1 by short-term Mexican government debt. The tokens are issued natively on Solana, which enables high-frequency minting, rapid settlement, and complete on-chain liquidity. Other benefits include instant settlement. In order to make CETES a dependable and programmable building piece for DeFi, daily NAV updates are introduced. These updates monitor the underlying sovereign exposure.

More than ninety-nine percent of the funds that is sent to Mexico comes in the form of electronic transfers. Mexico is one of the major recipients of remittances in the world, receiving approximately sixty-five billion dollars yearly. As a result of the country’s already established digital infrastructure, it is one of the most natural markets for on-chain sovereign assets. The usage of tokenized CETES as collateral inside Falcon provides users in nations that rely heavily on remittances with a means of maintaining exposure to the yield of the local sovereign while simultaneously unlocking liquidity denominated in dollars and gaining access to global decentralized finance markets.

“Adding CETES strengthens our ability to support diversified, yield-bearing RWA portfolios onchain. Users can hold tokenized Treasuries, gold, Mexican sovereign bills, or even a tokenized Tesla share, and at the same time unlock USDf liquidity and access DeFi yield without selling their underlying positions. This is a practical step toward a unified collateral architecture built around real assets rather than a single asset class.” – Artem Tolkachev, Chief RWA Officer, Falcon Finance

“Our goal is to make high-quality sovereign instruments globally accessible in a programmable format. CETES are backed by real short-duration government paper, issued natively on Solana, and built for instant liquidity. Falcon’s integration demonstrates how tokenized sovereign instruments can power real utility across DeFi.” – Dave Taylor, Etherfuse

CETES provide holders the opportunity to mint USDf without having to sell the underlying asset, while also providing users with access to regulated sovereign yields that are not denominated in the United States currency. For users who are interested in achieving regional and currency diversity, consistent short-duration income, and a direct bridge from real-world sovereign securities into onchain liquidity, this presents an alternate collateral route.

As a result of the integration, the multi-collateral architecture of the protocol is strengthened for Falcon. This is accomplished by the addition of a high-quality, yield-bearing, non-USD sovereign instrument that shows unambiguous duration and risk characteristics. An analytical framework that is consistent with Basel is used by CETES. This framework includes a short maturity, a clear sovereign credit profile, and the absence of structural leverage. This not only maintains transparency about risk, liquidity, and value, but it also increases the robustness and composition of the USDf collateral basis.

Falcon Finance is in the process of building a global collateral infrastructure that has the capability to transform any liquid asset, such as digital assets, currency-backed tokens, and tokenized real-world assets, into onchain liquidity that is tied to the United States Dollar. Falcon Finance has seen more than $700 million in new deposits and USDf mints since October, and recently surpassed $2 billion in circulation. Falcon provides organisations, protocols, and capital allocators with a straightforward method to liberate reliable and yield-generating liquidity from the assets they currently own. This is accomplished by bridging the gap between onchain and offchain financial systems.

Etherfuse is a protocol that tokenizes real-world emerging market bonds, which are pegged 1:1 with the underlying asset (unlike stablecoins issued by Circle and Tether), self-custodied (unlike bonds issued by Franklin Templeton/Blackrock), and freely tradeable (unlike bonds issued by Ondo/Backed, which are only available to qualified investors).