$127M in AA_FalconXUSDC with 18 holders is still small by RWA standards, but making it Morpho collateral turns a private-credit receipt into repo plumbing. The clean version is institutions keep FalconX/M11 credit exposure while borrowing USDC into Monad apps; the messy version is recursive vault leverage where liquidation math depends on offchain credit marks and monthly redemption gates, not just DEX depth.

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