FalconX, a leading institutional crypto prime broker, has expanded its tokenized structured credit facility to the Monad network. This initiative allows institutional credit vault deposits to serve as collateral within decentralized finance (DeFi) protocols, including Morpho. The facility utilizes AA_FalconXUSDC vault tokens, which represent participations in FalconX's $127 million lending portfolio. These tokens are claims on real institutional loans, not synthetic derivatives, and can be used as collateral in DeFi lending markets. The vault infrastructure is developed by Pareto, with M11 Credit overseeing curation and administration. Automated margin controls and on-chain settlement manage risk. This expansion is part of a broader trend in tokenized credit, with over $31 billion in real-world assets issued on-chain, including $5 billion in tokenized credit products. FalconX's move provides institutional investors with the ability to earn yield on credit positions while maintaining on-chain liquidity, though it also introduces risks related to smart contracts and liquidity during market stress.