Falcon, Anchorage launch fUSD with 3% yield for institutions

Falcon Finance has launched fUSD, a fully reserved stablecoin issued by Anchorage Digital Bank for institutional settlement, collateral and treasury use. Qualifying institutional holders can receive about 3% annual rewards, paid monthly.

Anchorage Digital Bank will act as the issuer and is responsible for custody and segregation of reserves, minting and redemptions against U.S. dollar deposits, and regulatory reporting required of a federally supervised stablecoin issuer. Falcon Finance will serve as the primary distribution partner and intends to support the product with capital from its own balance sheet at launch.

The rewards program targets roughly 3% annual yield for eligible institutional holders, delivered on a monthly basis. Falcon structured the program so a portion of income generated by the reserves backing fUSD flows to token holders rather than remaining with the issuer.

Falcon described the design as “engineered to bridge regulated traditional banking and high-velocity digital asset markets.” The product was built with the GENIUS Act framework in mind to align reserve and issuance practices with proposed federal standards for supervised stablecoin issuance.

Falcon positioned fUSD for corporate treasury management, trading collateral, position coverage and settlement between institutional counterparties. The token is intended for professional trading desks and institutional operations that require speed, transparency and regulatory oversight.

Global stablecoin circulation stands at roughly $320 billion. Anchorage’s issuance adds stablecoin capabilities to its existing institutional services, including custody, trading, staking, governance and settlement infrastructure.

Operationally, Anchorage will maintain reserve custody and segregation, handle minting and redemption processes tied to U.S. dollar deposits, and fulfill reporting obligations. Falcon will distribute fUSD to qualifying institutional clients who meet eligibility criteria for the rewards program.

Market participants have been seeking regulated dollar tokens with audited reserves and clear operational rules. The stablecoin market has faced pressure on issuers to share some of the economic benefits created by reserve assets; Falcon’s offering routes targeted rewards to holders while providing a regulated option for institutional liquidity and settlement.