In recent years, a growing phenomenon has become increasingly evident—more and more real assets are seeking to go on-chain. Bonds, government bonds, commodities, and even invoices, once tokenized, could channel trillions of dollars into the blockchain world. The question is, how can these assets truly become liquid?

There is a project called Falcon Finance, and their approach is straightforward: they draw from traditional financial collateralized financing models and bring them onto the chain. If you have tokenized real-world assets like government bonds or bonds (industry term: RWA), you can deposit them and proportionally mint stablecoins USDf, without having to sell your holdings.

What problem does this solve? Capital efficiency.

Previously, investors holding bonds would pass the time waiting for maturity; during this period, these assets were essentially frozen, with zero liquidity. Now? They instantly become collateral that can generate income on-chain. For institutional investors, this is akin to gaining flexible on-chain funding sources without relinquishing ownership and yields of their assets. For the entire DeFi ecosystem, it introduces real yield and low-volatility "stabilizers."

Why choose RWA as collateral? Simply put, stability. Compared to pure cryptocurrencies that often fluctuate by 20% or 30%, these assets have lower volatility and clear cash flows, making the overall system risk relatively controllable.

Falcon focuses on integrating such assets, essentially building infrastructure that even institutions dare to enter. The resulting stablecoin USDf is no longer just air; it is backed by a diversified portfolio of income-generating assets. When these RWAs generate returns, the entire system establishes a positive feedback loop.