Falcon Finance Introduces Tokenized Mexican CETES to Enhance USDf Collateral

Falcon Finance has expanded its collateral offerings by incorporating tokenized Mexican CETES, allowing access to on-chain liquidity and exposure to sovereign yields in emerging markets. This move diversifies risks for users and strengthens the decentralized finance ecosystem by introducing real governmental assets from countries beyond the U.S.

Key Takeaways

Falcon Finance has added tokenized Mexican CETES to its collateral base.
This integration grants users access to on-chain liquidity and sovereign yields in emerging markets.
CETES are tokenized using Etherfuse's Stablebonds architecture, ensuring transparency and security.
Over 99% of funds sent to Mexico are through electronic transfers, highlighting the country's digital infrastructure.
This initiative helps users maintain exposure to local sovereign yields while accessing dollar-denominated liquidity.
Falcon Finance aims to build a global collateral system, transforming various liquid assets into on-chain liquidity linked to the U.S. dollar.

Main Content

Falcon Finance has broadened its collateral base beyond the U.S. Treasury system with the introduction of CETES, a type of Mexican government bond. This innovation allows customers to access on-chain liquidity while also benefiting from sovereign yield opportunities in an emerging market. By doing so, Falcon diversifies risks and enhances the geographical range of its collateral architecture, incorporating actual government instruments from countries outside of the United States into the decentralized finance (DeFi) economy for the first time.

CETES are tokenized using Etherfuse’s Stablebonds architecture, which is a bankruptcy-remote and transparently structured instrument. Each token is backed 1:1 by short-term Mexican government debt and is issued natively on the Solana blockchain. This setup facilitates high-frequency minting, swift settlement, and full on-chain liquidity. Moreover, the inclusion of daily net asset value (NAV) updates ensures that users can monitor their sovereign exposure accurately.

In Mexico, more than 99% of funds sent into the country are through electronic transfers, making it one of the leading recipients of global remittances, receiving roughly sixty-five billion dollars annually. With a well-established digital infrastructure, Mexico represents a prime market for on-chain sovereign assets. By using tokenized CETES as collateral on Falcon, users in remittance-reliant countries can maintain exposure to local sovereign yields while unlocking dollar-denominated liquidity, thus connecting them to global DeFi markets.

By allowing holders of CETES to mint USDf without needing to sell their underlying assets, Falcon provides users with access to regulated sovereign yields outside the U.S. currency. This option presents an appealing alternative for users who seek regional and currency diversity, consistent short-duration income, and a direct link between real-world sovereign securities and on-chain liquidity.

The introduction of CETES into Falcon's multi-collateral architecture enhances its robustness. This integration adds a yield-bearing, non-U.S. sovereign instrument, characterized by clear duration and risk traits. CETES align with an analytical framework consistent with Basel standards, incorporating short maturity, a clear sovereign credit profile, and no structural leverage. This approach not only maintains transparency regarding risk, liquidity, and value but also reinforces the strength and structure of the USDf collateral base.

Falcon Finance is actively developing a global collateral infrastructure capable of transforming any liquid asset—including digital assets, currency-backed tokens, and tokenized real-world assets—into on-chain liquidity linked to the U.S. dollar. Since October, Falcon has seen over $700 million in new deposits and USDf mints, surpassing $2 billion in circulation. Falcon offers organizations, protocols, and capital allocators a streamlined method to unlock reliable, yield-generating liquidity from their existing assets, bridging the gap between on-chain and off-chain financial systems.

Etherfuse provides a protocol for tokenizing real-world emerging market bonds, which are pegged 1:1 with the underlying asset—unlike stablecoins from Circle and Tether, self-custodied (contrary to bonds from Franklin Templeton/Blackrock), and freely tradable (in contrast to bonds from Ondo/Backed, which are restricted to qualified investors).