Recently, I had dinner with a friend who runs a small factory. He complained about holding 500,000 in corporate accounts receivable notes that won't mature for another 3 months. His cash flow is a bit tight, and while he wants to liquidate, he would incur significant fees. He asked me if I had a reliable solution. I suddenly remembered that Falcon Finance can do RWA collateralization, so I tried to help him explore this option. To my surprise, I managed to free up his funds within a week without incurring any fees. This operation helped me fully understand the practical value of FF RWA collateralization.
At first, my friend was skeptical, thinking that "the things in the crypto circle are unreliable; what if the notes get scammed?" I first had him look at the RWA collateral explanation on the FF official website, specifically pointing out that the cooperating RWA issuers have a JAAA rating and that there are weekly third-party audit reports detailing the connected RWA asset specifics, with the flow of funds being traceable throughout. More importantly, FF collaborates with independent custodians, meaning that ownership of the notes still belongs to him; they are only temporarily collateralized and can be redeemed upon maturity without affecting future payments.
After finalizing it, the operation process was simpler than expected. The first step is to submit bill information and business qualifications. FF's review team was very efficient, providing feedback on the approval the next day and even connecting him with a customer manager for full guidance on subsequent operations. The second step is to determine the mortgage rate. Based on the credit rating and maturity of the bill, a final mortgage rate of 70% was set, allowing a bill worth 500,000 to mortgage out 350,000 USDf. My friend was initially worried that the amount would be too low after conversion, but upon seeing this ratio, he immediately breathed a sigh of relief.
What’s even more surprising is the income linkage. I suggested he deposit the 350,000 USDf he mortgaged into the FF treasury, which not only earns stable returns in sUSDf but also accumulates Falcon Miles points. Over the past month, not only could the 350,000 funds be flexibly rotated, but sUSDf also earned nearly 3,000 dollars in returns, and the points are almost enough to upgrade to LV2, which could also unlock income bonuses. My friend calculated the numbers, and compared to the fees he would lose from going through intermediaries to cash out, this operation actually made him more money, exclaiming that it 'opened the door to a new world.'
During the process, there was a small incident where my friend was worried that redeeming the bill upon maturity would be troublesome. The customer manager specifically explained that the redemption process is as simple as the mortgage; just submit a redemption request a week in advance. After approval, returning the mortgaged USDf will allow him to retrieve the bill, and there are no extra fees. To be safe, I also helped him check FF's historical data on RWA mortgages, which shows a 100% redemption success rate, completely alleviating his concerns.
This experience also made me realize that FF's RWA mortgage is not exclusively for institutions as a 'high-end gameplay.' Ordinary people like small and medium-sized business owners, or those with idle bills or bonds in hand, can also activate assets using it. Many people currently have substantial 'sleeping' real assets, which either lose value when liquidated or must be held until maturity. FF's generic mortgage infrastructure just bridges the gap between traditional assets and DeFi, allowing these assets to generate additional returns.
Later, I shared this gameplay in the business owner group chat, and many people came to ask for details. Two friends who are in trade have already started trying it out. In fact, for ordinary people, DeFi doesn't necessarily have to involve trading cryptocurrencies. Utilizing the RWA functionality of projects to activate idle assets around us can ensure the safety of funds and steadily earn returns, which is a more practical way to get started. I also plan to study the new RWA asset types added by FF to see if I can help my friends explore more ways to activate assets.
