How USDf holds its peg

USDf isn't backed by dollars in a bank. Falcon Finance takes stablecoins one for one and bitcoin and other coins with a buffer on top, holds them with custodians, and says it hedges the coins with short futures.

Read how it works

Behind a BTC mint

BTC $80,000

BTC locked$0
Short perpnone
Together$0
USDf minted0

Nothing locked yet.

Click a step on the right, or use the arrow keys, to jump to it. Move your mouse to shift the view.

Falcon's dashboard and sUSDf, live

Reading Falcon's transparency API…

Reading the sUSDf contract…

Just minted and burned

    USDf tokens collateral, into and out of the reserves tokens being burned a Chainlink CCIP message between chains a chain's ledger flashes as it settles USDf reserves: BTC, enzoBTC, stablecoins, other
    Supply by chain Reading supplies…
    How this is read

    Ethereum is USDf's home chain: its figure is the total supply minus the USDf locked in Chainlink's CCIP pool for other chains. BNB Chain, XDC and Base each show their own token supply. All are read from public nodes every 30 to 60 seconds, so together they add up to Falcon's own circulating figure. Use the arrow keys to read each row.

    USDf supply on each chain
    ChainSupplyShareRead at
    Minted and burned
    • minted, up
    • burned, down

    Use the left and right arrow keys to read each column. In live mode each column is half an hour, covering the last 20 hours; the hours before you connected include only Ethereum. USDf is minted and burned only a few times a day, so many columns are empty.

    USDf minted and burned in each recent period
    PeriodMintedBurnedNet
    What just happened (illustrative) 0 USDf in circulation 0 in reserve 0 minted 0 burned 0 chains shown

      The parts that make this work

      A synthetic dollar with a buffer

      USDf is a token issued by Falcon Digital Limited, a company in the British Virgin Islands trading as Falcon Finance. It aims to stay at one US dollar without dollars in a bank behind it. Falcon takes stablecoins, bitcoin, ether and dozens of other coins, plus some tokenised gold, shares and Treasury funds, and mints USDf against them. Stablecoins mint one for one; everything else mints with a buffer, so the collateral is worth more than the USDf. Falcon's documents say the non-stablecoin collateral is run in "delta-neutral" strategies: held alongside short futures of the same size, so its dollar value doesn't follow the price.

      Falcon's whitepaper is written by Andrei Grachev, also a managing partner of the crypto trading firm DWF Labs, who signed its April 2026 reserves report. USDf opened to the public in April 2025 after a closed beta, passed 2 B in late 2025, and stood at 1.63 B at the end of April 2026. On October 1, 2026 the Ethereum contract's totalSupply was 1.213 B.

      Minting: classic and "innovative"

      Minting and redeeming with Falcon requires an identity check (KYC). A Classic Mint needs at least $10,000 of collateral. Stablecoins such as USDT, USDC, DAI, USDS, USD1 and FDUSD mint one for one. Other coins mint at an overcollateralisation ratio (OCR) Falcon sets per asset from its volatility, liquidity and slippage; its own guide uses a 20 % buffer on BTC as the example ($1,200 of BTC for 1,000 USDf). The buffer can be claimed back later: in full, in coins, if the price is at or below where it started; or as its dollar value at the starting price if the price has risen.

      An Innovative Mint, from $50,000, locks a coin for 3 to 12 months and fixes a liquidation price and a strike price at the start. If the price falls below the liquidation price at any time, Falcon sells the collateral and the user keeps only the USDf. If it ends between the two, the user can return the USDf within 72 hours and take the coin back. If it ends above the strike, Falcon keeps the coin and pays out the difference up to the strike in extra USDf.

      Redeeming, and what holds the price

      A redemption swaps USDf for stablecoins; a "claim" returns the coins a user locked. Both wait a 7-day cooldown, which Falcon says gives it time to pull assets out of its strategies. Unstaking sUSDf for USDf is immediate. Because only verified users can mint and redeem, most holders exit by selling. When USDf trades above $1 they can mint and sell; below $1 they can buy and redeem, though the cooldown makes that trade slower and riskier than it is for coins redeemable the same day.

      USDf has traded a little under a dollar for most of 2026: between $0.994 and $0.998 in CoinGecko's daily prices over the six months to October 1, 2026. Chainlink's USDf/USD feed read $0.9965 at 15:10 UTC on September 30.

      What backs USDf

      Falcon publishes a dashboard of its reserves, and the accountants HT Digital Ltd write a weekly letter on what they've seen. On September 28, 2026 at 11:59 UTC, the letter counted 1,212.932 M USDf in circulation and $1,848.29 M of collateral, valued at CoinGecko prices: 152 % of the supply.

      USDf collateral, September 28, 2026
      AssetUS dollars (millions)
      BTC and wrapped BTC1,445.721
      enzoBTC (Lorenzo's wrapped BTC)344.620
      Stablecoins (USDT, USDC, USD1, USDS, DAI and others)45.026
      ETH, SOL and all other coins12.924
      Total collateral1,848.291

      Falcon's own dashboard, at 10:03 UTC on September 30, showed $1,898 M of reserves for 1,213 M USDf (156 %). By venue, about $1.87 B was BTC in a multisig custody account it labels ChainUp, $63 M at Fireblocks, $47 M on Binance, $15 M at Ceffu and $17 M in on-chain liquidity pools. Those rows add up to $2.01 B, more than the headline figure; the dashboard doesn't say why.

      The latest full assurance report, a "reasonable assurance" engagement by HT Digital under the ISAE 3000 standard, covered April 30, 2026: 1,625,018,685 USDf against $1,676,378,223 of reserves (103 %), almost all of it BTC, wrapped BTC and ETH. HT Digital's weekly letters note that it hasn't checked whether any of the collateral is pledged elsewhere.

      The snapshot is not read live in the vault: the page shows it as it was on that date. Sources: Falcon transparency dashboard and the data behind it, api.falcon.finance/api/v1/transparency; HT Digital's weekly letter of September 28, 2026 and assurance report as at April 30, 2026, both linked from the dashboard.

      Hedged, or just overcollateralised?

      Falcon describes two protections: a buffer on every non-stablecoin mint, and hedges that cancel price moves. Only the first can be seen from outside. The dashboard and the letters list holdings at market prices; they don't list the futures positions that would hedge them, and only about $125 M sits on Binance or with the off-exchange settlement custodians (Ceffu, Fireblocks) whose balances can margin such shorts. Between April 30 and September 28, 2026 the supply fell by a quarter (1.63 B to 1.21 B) while the reported reserves rose 10 %, about as much as bitcoin's price (from about $75,800 to $84,400). Whether the bitcoin is hedged, as Falcon's documents describe, can't be checked from what Falcon publishes. This page therefore shows the backing as one vault of off-chain assets and labels the hedge as Falcon's description.

      sUSDf: where the yield goes

      Staking USDf in the sUSDf contract (an ERC-4626 vault on Ethereum) gives a share whose value in USDf only rises. Once a day Falcon adds up what its strategies earned (funding-rate and basis trades, arbitrage across exchanges, staking, liquidity pools, options) and mints that much USDf: some into the vault, some for users who locked sUSDf for a fixed term in return for a higher rate, represented by an NFT. On October 1, 2026 the vault held 64.9 M USDf for 57.1 M sUSDf, so 1 sUSDf was worth 1.1368 USDf; only about 5 % of USDf was staked. Falcon's dashboard put the base APY at 4.21 % on September 30. Live mode reads the vault directly.

      Across chains with Chainlink CCIP

      USDf moves between chains through Chainlink's Cross-Chain Interoperability Protocol. On Ethereum, USDf sent elsewhere is locked in a CCIP token pool; on BNB Chain, XDC and Base it's minted on arrival and burned on departure. On October 1, 2026 the Ethereum pool held 165.34 M USDf, matching BNB Chain's 114.49 M, XDC's 50.00 M and Base's 0.85 M. A Solana version is registered with CCIP but had no supply.

      Because the locked USDf stays in Ethereum's totalSupply, that one number is the whole supply, and it's the figure Falcon and HT Digital use. Adding the other chains' supplies on top counts the bridged USDf twice: CoinGecko's market cap of about $1.37 B on October 1, 2026 is built on 1.378 B, which does.

      What can go wrong

      Confidence in the backing. In July 2025 USDf slipped as low as about $0.978 as on-chain liquidity thinned and critics questioned how much of the collateral was off-chain altcoins. Falcon answered with the transparency dashboard, weekly letters and quarterly assurance reports.

      Concentration. Nearly all the collateral is bitcoin, most of it in one custody account. If the hedges Falcon describes aren't there, a fall in bitcoin eats into the 52 % margin above the supply directly. Custodians and exchanges are counterparties too.

      Slow exits. The 7-day redemption cooldown means a holder in a hurry depends on market buyers. Falcon's insurance fund, which it says can buy USDf in the market during stress, held 10 M USD1 on Ethereum on October 1, 2026, under 1 % of the supply.

      fUSD, the other Falcon dollar

      fUSD, announced on May 27, 2026, is a separate, conventional stablecoin issued by Anchorage Digital Bank and backed one for one by cash, short-dated Treasuries and Treasury repo, for institutions that need a non-synthetic dollar. This page is about USDf.

      What live mode shows

      Live mode reads USDf's supply on Ethereum, BNB Chain, XDC and Base from public nodes, subtracting the USDf locked for other chains from Ethereum's figure. It reads every Ethereum block's USDf transfers, which gives the transfer rate and every mint and burn, and fills the last 20 hours from Ethereum's logs; BNB Chain and XDC are polled for mints and burns, which there are almost always CCIP transfers rather than new USDf. The left panel reads Falcon's transparency API every five minutes (reserves, ratio, base APY, insurance fund) and the sUSDf vault every minute. The vault's layers are the dated snapshot above.

      What the animation simplifies

      The reserves are drawn as one vault; in reality they're custody accounts, exchange balances and wallets. In step-by-step mode the vault starts level with the supply, though the real reserves were about 1.5 times it. The position panel uses one round BTC price, Falcon's example 20 % buffer and a short of the full amount, and ignores fees, funding and basis. The yield step uses the 4.21 % base APY on the 50 M staked here. Each chain is a small ring of wallets, and the starting supply is an illustrative billion split the way the real one is. Read Falcon's documentation for the details.