Falcon Finance's Harris and Trotter LLP audit report certified that USDf is fully backed by reserves.Falcon Finance's Harris and Trotter LLP audit report certified that USDf is fully backed by reserves.

Falcon Finance publishes audit report validating USDf reserves

2025/10/01 20:50

On October 1, Falcon Finance released its first Independent Quarterly Audit Report on USDf Reserves, conducted by audit firm Harris and Trotter LLP. The report confirmed that all USDf tokens in use are backed by reserves that exceed liabilities.

The Independent Assurance report confirmed all reserves were held in segregated accounts on behalf of USDf holders. Harris and Trotter LLP followed the International Standard on Assurance Engagements (ISAE 3000)  in conducting the review. Falcom Finance confirmed the sufficiency of reserves in user deposits, collateral valuation, and wallet ownership. The review confirmed that USDf is not fully collateralized but backed by a diversified reserve base designed for resilience.

On the ERC-20 network, the total quantity of the staked Falcon USD (sUSDf) token is limited to 432,820,784 tokens. Today, 4,183 holders or 0.311% of the supply have over 95,527 registered transfers.

Falcon Finance’s Transparency Dashboard indicates that the total reserves are $1.96 billion in USDf and 126.75 million in sUSDf. The protocol backing ratios are 103.87% and 6.46%, respectively. USDf maintains a price of $1 with a circulating supply of 1.89 billion. The sUSDf-to-USDf value is currently $1.0682 with a supply of 729.84 million. The staked version, sUSDf, offers holders an annual dividend of 10.06% to enhance stability and user safety. Falcon Finance has allocated $10 million to an insurance fund.

The current price of Falcon USD (USDf) is $0.9988, a 0.05% decrease from the previous day. The stablecoin’s daily trading volume is $34.67 million, equivalent to 2.12% of its market capitalization of $1.63 billion. On-chain data indicates that there are 17,040 holders and $ 1.63 billion in circulation.

Falcon involves auditors to strengthen transparency

According to Falcon Finance’s Transparency Dashboard, Harris & Trotter LLP will conduct an ISAE 3000 Assurance engagement to examine the reserves as of the end of each quarter. The dashboard shows that HT Digital Ltd will recalculate the weekly reports.

Zellic, a security research firm, released a report on March 7, 2025, that evaluated Falcon Finance’s smart contracts for security vulnerabilities, design problems, and integration hazards from February 11 to February 17, 2025. The evaluation confirmed that USDf tokens are intended to be stored in the StakingRewardsDistributor contract until they are moved to the STAKING_VAULT contract as rewards.

Falcon Finance claimed $1.96 billion in total reserves as of September 22, 2025, and $1,889.326 million tokens in circulation. Stablecoins accounted for $666.599 million, Bitcoin and Wrapped Bitcoin for $1.002 billion. Major altcoins, including Ethereum, accounted for $13.031 million, SOL for $3.328 million, and DOGE for $112.371 million. The other coins accounted for $231.451 million. Falcon Finance noted that market swings could impact asset prices, and valuations were determined using collateral amounts and the previous day’s CoinGecko pricing data.

Andrei Grachev, Founding Partner of Falcon Finance, stated that at Falcon, they are constructing reliable, yield-producing infrastructure that meets the demands of on-chain users and regulators.

Falcon expands ecosystem with $FF token launch 

On September 19, 2025, Falcon Finance announced the creation of the FF Foundation and presented the tokenomics structure for its forthcoming $FF token. Falcon marked a significant milestone in the development of transparent and compliant financial infrastructure for institutional and on-chain markets through Falcon Finance.

Falcon Finance stated that its ecosystem’s utility and governance token will be the $FF token. It revealed that holders will have direct control over governance, influencing the development and choices made for the protocol. Holders will also receive benefits, such as yields in USDf, by staking $FF, as announced by the stablecoin provider. Falcon Miles, a program launched by Falcom to reward users for participating in the ecosystem, will be available to runners. The protocol will use structured community awards linked to staking, minting, and other engagement activities to distribute $FF.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Crypto On Alert: Raoul Pal Hints At Macro Twist Post-US Govt Shutdown

Crypto On Alert: Raoul Pal Hints At Macro Twist Post-US Govt Shutdown

As the latest US government shutdown ends and markets refocus on macro plumbing, Raoul Pal has sketched out a strikingly liquidity-heavy roadmap on X – one that, in his framework, has direct implications for crypto. “So now the US Gov has reopened, what’s next?” Pal asks. He immediately points to the Treasury General Account (TGA): “Expect a few days for TGA spending to begin to significantly add to liquidity and should persist for several months.Obviously, QT ends in Dec and the balance sheet will crawl higher. We should see the dollar begin to weaken again.” Mechanically, TGA drawdowns push cash back into bank reserves and money markets, reversing the reserve drain that built up while the government was partially shut. At the same time, the Federal Reserve has already confirmed that quantitative tightening (QT) will end on December 1, 2025, shifting from active balance-sheet reduction to full reinvestment of maturing Treasuries and a more “maintenance” stance. When Will Crypto Prices Rise Again? Pal’s point is that both channels tilt the system toward more dollars sloshing through funding markets, a backdrop he has long argued is constructive for risk assets, including crypto. The near-term risk, in his view, is a classic year-end funding squeeze. “The next key step is to avoid a Year End funding squeeze. Expect several ‘temporary’ measures to add liquidity. Term Funding and SRF operations are most likely.” Related Reading: SEC Chair Sets Out Plans For Crypto Taxonomy To Define Digital Asset Classification Here he is referring to term repo or funding facilities and the Standing Repo Facility (SRF), which the Fed can scale up to backstop banks’ access to cash if overnight rates spike. That reading aligns with recent Fed communication that elevated SRF usage and tighter money-market conditions were central reasons for ending QT early. Pal then escalates from tactical tools to structural regulation: “That will eventually morph into the desperately needed changes to the SLR to allow banks to absorb more issuance and re-lever their balance sheets. This is a big liquidity bazooka. Expect in Q1. SLR should lower rates as banks buy more bonds.” The Supplementary Leverage Ratio (SLR) caps large banks’ overall balance-sheet size, regardless of asset risk. Loosening it for Treasuries and reserves has been debated for years as a way to let dealers warehouse more government debt without breaching constraints. If regulators move in that direction, it would, as Pal notes, free capacity for banks to buy more bonds and could exert downward pressure on yields—again easing financial conditions. Related Reading: The 2025 Year-End Crypto Outlook: The Catalysts That Will Decide Everything For crypto, that matters indirectly: Pal’s core macro thesis is that improving liquidity and lower real yields are the primary tailwinds for digital assets. Regulation is explicitly on his radar too: “Also expect CLARITY Act for crypto to begin to get finalized.” The Digital Asset Market Clarity Act of 2025 (“CLARITY Act”) has already passed the US House and is now before the Senate. It would define digital asset categories and divide oversight between the CFTC and SEC, replacing much of the current “regulation by enforcement” model. Pal’s remark signals his expectation that the shutdown’s end clears the way for renewed legislative momentum – a key piece of the institutional puzzle for non-bitcoin crypto. He closes by broadening the lens to global and fiscal policy: “There will also be stimulus payments and the Big Beautiful Bill fiscal goosing. China will continue balance sheet expansion. Europe will add fiscal stimulus or extra spending. The debts must be rolled and the Gov wants to super heat the economy into the Mid-Terms. This is the Liquidity Flood…. the spice must flow.” Taken together, Pal is describing a synchronised regime: post-shutdown TGA spending, the end of QT, potential SLR relief, progressing US crypto legislation, and ongoing fiscal and monetary support in China and Europe. For crypto investors who share his liquidity-centric lens, the message is not subtle: the macro “spice,” in his view, is about to flow again. At press time, the total crypto market cap dropped to $3.24 trillion. Featured image created with DALL.E, chart from TradingView.com
Share
NewsBTC2025/11/14 22:00