Passive Stocks Become Dynamic: DeFi Brings Yield Opportunities to Conventional Equities
- Falcon Finance partners with Backed Finance to integrate tokenized equities (e.g., Tesla, Nvidia) as collateral for minting USDf, a synthetic dollar. - xStocks, fully backed by regulated custodied assets, enable real ownership in traditional stocks while operating as transferable blockchain tokens. - Chainlink oracles ensure real-time price tracking, while USDf's $2.1B supply highlights demand for hybrid DeFi-traditional finance solutions. - The collaboration activates $12B passive RWA market by leveragi
Falcon Finance, a prominent player in decentralized finance (DeFi), has joined forces with Backed Finance to incorporate tokenized stocks into its collateral system, representing a major move toward connecting conventional finance with blockchain-powered liquidity. Through this partnership, Falcon users can now create USDf—Falcon’s overcollateralized synthetic dollar—by utilizing Backed’s xStocks-compliant tokenized representations of real-world shares such as
The xStocks tokens are fully supported by actual equities held with regulated custodians, granting users direct financial exposure to traditional stocks while functioning as transferable ERC-20 and SPL tokens. Unlike derivatives or contracts for difference (CFDs), xStocks confer genuine ownership of the underlying shares. Chainlink oracles provide reliable and transparent pricing by monitoring live market values and corporate actions, which allows for smooth integration with DeFi platforms, according to a
This alliance highlights Falcon’s position as a comprehensive collateral infrastructure, accommodating assets that go beyond digital tokens. As per the most recent attestation, the circulating supply of USDf has surpassed $2.1 billion, secured by $2.25 billion in reserves that are validated by HT Digital and undergo quarterly audits in accordance with ISAE 3000 standards. This expansion reflects a rising appetite for stable and transparent onchain liquidity. Andrei Grachev, Founding Partner at
David Henderson, Head of Growth at Backed, remarked that the integration “creates a new paradigm” by transforming tokenized stocks from mere value holders into essential components for decentralized finance. Since its inception in 2021, the xStocks initiative has enabled tokenized equity trading across several blockchain networks, with Falcon’s adoption marking a key moment in the merging of onchain and traditional finance, according to DL News.
Tokenized real-world assets (RWAs) have quickly become one of the most dynamic sectors in onchain finance, though the majority of their $12 billion market value remains inactive. The collaboration between Falcon and Backed seeks to unlock this value by making tokenized equities active collateral, harnessing DeFi’s open architecture while adhering to established financial regulations. This move is in line with broader industry developments, such as Kraken’s recent $5 billion in tokenized equity trading and tZERO’s plans for a public offering in 2026 within the tokenized securities market.
As the RWA sector evolves, Falcon’s universal collateral approach positions it to meet the increasing demand for integrated financial solutions. With its robust reserves and commitment to transparency, the platform aims to attract both institutional and individual investors looking for returns from both digital and traditional assets. Nonetheless, the partnership with Backed also brings regulatory considerations to the forefront, especially as tokenized equities face shifting compliance standards in regions like the United States and Switzerland, as highlighted by the Daily Hodl report.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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