Falcon Finance and Anchorage Digital Bank launched fUSD, a GENIUS-ready stablecoin that shares roughly 3% in annual Treasury-backed rewards with qualifying institutional holders.
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Falcon Finance and Anchorage launch fUSD stablecoin with 3% rewards for institutions
With $320 billion in stablecoins in circulation and short-dated Treasury yields near 4%, holders collectively forgo more than $10 billion a year in returns. fUSD, launched Tuesday by Falcon Finance and Anchorage Digital Bank, is built to close that gap.
"The desks we work with operate under compliance mandates that synthetic and offshore stablecoins were never designed to satisfy, and the regulated dollars they can hold today pay them nothing," Andrei Grachev, founding partner of Falcon Finance, said in a statement. "fUSD closes both gaps."
fUSD is issued by Anchorage Digital Bank, the first federally chartered crypto bank in the US, with reserves under OCC supervision and attested monthly by Deloitte. Each token is backed 1:1 by cash, short-dated US Treasuries, and Treasury-backed repo. The GENIUS Act, enacted July 18, 2025, restricts issuers from paying yield directly, so rewards are distributed by Falcon Finance under separate bilateral agreements with qualifying institutional holders, targeting roughly 3% per year.
Falcon Finance will deploy a portion of its own corporate reserves into fUSD from launch, signaling confidence in the structure. The stablecoin launches on Ceffu's institutional custody infrastructure, the same platform used by FalconX, Presto and Orderly, positioning it where professional desks already manage collateral.
The launch gives Falcon Finance two complementary dollar products. USDf, the overcollateralized synthetic dollar with $1.63 billion in circulating supply and ranked among the top 10 stablecoins on Ethereum by market cap, continues to serve DeFi-native users. fUSD extends Falcon's reach to federally regulated treasury desks, compliance-constrained counterparties, and institutional collateral mandates that require a regulated, non-synthetic dollar.
How the rewards structure works
The GENIUS Act framework prohibits stablecoin issuers from paying interest or yield to holders. Anchorage Digital Bank issues fUSD but does not pay yield or rewards on the stablecoin itself. Instead, Falcon Finance, as the commercial partner, operates an institutional rewards program tied to the stablecoin's underlying collateral. No other regulated US dollar stablecoin currently offers this structure to institutional holders, according to the companies.
fUSD is available on a whitelist basis to eligible institutional counterparties only. Use cases include corporate treasury desks seeking compliant yield on dollar holdings, proprietary trading firms needing cross-venue execution with regulated collateral, and prime brokerage operations managing margin and financing on transparent reserves. The product is deployed on Ethereum mainnet and BNB Smart Chain.
Nathan McCauley, CEO and co-founder of Anchorage Digital, said fUSD is "built from the ground up for institutional use, and that's only possible because of our federal bank charter." Ian Loh, CEO of Ceffu, said the integration "delivers institutional-grade custody and collateral utility."
This article is for informational purposes only and does not constitute investment advice.
[1] Falcon Finance and Anchorage Digital Launch fUSD Stablecoin With 3% Yield for Institutional Holders[2] Falcon Finance and Anchorage Digital Bank Launch fUSD, a GENIUS-Ready Stablecoin with Rewards on Ceffu[3] Falcon Finance and Anchorage Digital Bank launch fUSD, a GENIUS-ready stablecoin with rewards on Ceffu[4] Falcon Finance, Anchorage Launch Institutional Stablecoin fUSD - bloomingbit
