Falcon Finance Now Accepts Centrifuge's JAAA as Collateral - U.Today

• Falcon Finance users can now mint USDf with Centrifuge’s JAAA as collateral
• Falcon Finance heading toward cross-collateral vision Falcon Finance DeFi protocol announces the addition of JAAA, a real-world credit asset by Centrifuge, as a collateral for USDf stablecoin minting. This release enhances the flexibility of liquidity logistics and unlocks new opportunities for investors across DeFi and RWA verticals.

Falcon Finance users can now mint USDf with Centrifuge’s JAAA as collateral

As per the official statement by its team, Falcon Finance has made Centrifuge’s real-world credit token JAAA eligible as collateral to mint USDf, marking one of the very few live cases where a diversified AAA-rated CLO portfolio can serve as collateral in DeFi.

JTRSY, a short-duration tokenized Treasury product, is also being added, expanding Falcon’s high-quality collateral set. The inclusion of these assets open the door to investment-grade corporate credit as part of Falcon’s next phase of RWA integration.

Bhaji Illuminati, CEO & Cofounder of Centrifuge Labs, explains the meaning of this announcement for the DeFi and RWA development sphere:

Tokenizing real-world assets is only the first step. The real transformation happens when these assets can be used as collateral directly onchain. By enabling JAAA and JTRSY to power new forms of credit through Falcon Finance, this partnership unlocks additional utility for holders and moves the industry closer to a fully interoperable, onchain financial system.

Falcon Finance, the universal collateral infrastructure for on-chain liquidity and delta-neutral yield, continues to expand its collateral universe beyond crypto, treasuries and tokenized equities

The inclusion of JAAA introduces a new category of high-quality, structured real-world credit into Falcon’s ecosystem, moving RWAs on-chain from a passive asset class to one that can be natively deployed for liquidity and yield.

Falcon Finance heading toward cross-collateral vision

JAAA, currently over $1 billion in TVL, is Centrifuge’s real-world asset token managed by Janus Henderson representing a curated, diversified portfolio of short-duration, investment-grade corporate credit. It brings an enhanced yield product through structured credit instruments, packaged into an accessible, on-chain format that allows high-quality corporate debt to function as collateral in DeFi.

By accepting JAAA as collateral, Falcon enables users to keep exposure to high-quality real-world credit without selling it, while minting USDf against that position and deploying it across Falcon and the broader DeFi ecosystem. Structured credit stops being a static holding and becomes collateral that can be actively used for on-chain liquidity and capital efficiency.

Artem Tolkachev, Chief RWA Officer at Falcon Finance, expects many more developments in this sphere to be revealed soon:

We’re expanding Falcon’s RWA engine and partnering with the leading teams in the space, and Centrifuge is clearly one of them. The market is evolving from a first wave focused on tokenized Treasuries toward higher-yield, higher-complexity credit assets. Our goal is to support this shift by enabling liquidity for any well-structured tokenized asset, whether it delivers yield or carries market volatility. JAAA fits this direction perfectly and shows how real-world credit can become usable collateral onchain.

Falcon uses RWA tokens purely as collateral, held in segregated reserve accounts. The economics of USDf do not depend on the yield of the underlying RWA; returns continue to come from Falcon’s market-neutral strategy stack. This allows collateral risk, strategy activity and user return to remain clearly separated, keeping USDf consistent in behavior across different collateral types.