UAE M2 Capital, the investment arm of M2 Group, owner of M2 Crypto exchange, is going all in on synthetic crypto dollars, and has once again made an investment into a synthetic dollar protocol Falcon Finance with $10 million, after making its first $20 million investment in Ethena. Ethena powers USDe, a crypto-native synthetic dollar, and sUSDe, its value-accruing form.
The investment comes at a time of rapid growth for Falcon Finance. In recent months, the protocol has surpassed $1.6 billion in USDf circulation, placing it among the top ten stablecoins by market capitalization. Falcon also established a $10 million on-chain insurance fund, seeded with protocol fees, to serve as a protective buffer for users and safeguard yield obligations in times of stress.
In parallel, the team successfully completed the industry’s first live mint of USDf against tokenized U.S. Treasuries, bridging DeFi liquidity with real-world assets and advancing the integration of institutional-grade instruments into the decentralized ecosystem.
Falcon Finance will use the investment to accelerate its global roadmap, and expand its fiat corridors, just as Ethena has announced it would do with its $20 million investment from M2 Capital.
James Greenwood, CEO of M2, explained that their investment in Falcon Finance reflects M2’s conviction that the next era of digital assets will be defined by combining resilient, transparent infrastructure with pioneering products and investment opportunities.
He noted, “Falcon’s universal collateralization model and synthetic dollar protocol are precisely the kind of innovations that enable M2’s family office, institutional investor, and high-net-worth clients to access digital asset markets with confidence, liquidity, and real-world integration.”
“This partnership with M2 marks a new chapter for Falcon Finance,” said Andrei Grachev, Founding Partner at Falcon Finance. “It is a powerful endorsement of the progress we’ve made, from surpassing a billion USDf in circulation to pioneering on-chain insurance and bridging DeFi with real-world assets. With M2’s support, we are accelerating toward our vision of building the most resilient and inclusive financial infrastructure in the digital economy.”
