Falcon Finance, Anchorage Launch Institutional Stablecoin fUSD

Falcon Finance said May 27 that it launched fUSD, a stablecoin for institutional investors, with Anchorage Digital Bank, a federally chartered US crypto bank.

fUSD is issued by Anchorage and operates on the infrastructure of institutional custody platform Ceffu. Its reserves are managed under the supervision of the Office of the Comptroller of the Currency, and Deloitte provides monthly reserve attestations.

The stablecoin was designed to comply with the GENIUS Act, which restricts stablecoin issuers from offering interest or yield directly to users. As a result, rewards on fUSD will be provided by Falcon Finance rather than issuer Anchorage to institutional investors that sign separate contracts. The currently disclosed reward rate is about 3% a year.

Falcon Finance also plans to place part of its own reserves into fUSD from the initial launch to demonstrate confidence in the issuance structure and the product's stability.

"Institutional investors want dollar-denominated assets that meet regulatory requirements while still offering a return," Falcon Finance co-founder Andrei Grachev said. "fUSD is an institutional dollar product issued by a federally chartered US bank and managed with reserves based on US Treasuries."

Anchorage Digital co-founder and Chief Executive Officer Nathan McCauley said fUSD was designed for institutional use. Falcon Finance is pursuing its business within the US regulatory framework, he added.