RedStone, a DeFi oracle network, has launched RedStone Settle, a settlement layer designed to make tokenized real-world assets usable inside DeFi lending markets. It debuts with Symbiotic’s Instant Liquidity vault as its first integrated liquidity layer.
More than $30 billion in tokenized real-world assets sits on-chain, but most of it cannot be used in DeFi lending, and the reason is structural. Lending protocols like Aave and Morpho rely on instant liquidations to manage risk, selling collateral within minutes when positions fall below thresholds.
RWAs, by contrast, carry redemption timelines of 60 to 180 days. When an RWA-backed position is liquidated, the protocol can seize the asset but cannot convert it into liquidity fast enough, making it unusable as collateral despite the growing supply. That gap has kept RWAs outside the lending infrastructure, despite growing demand from both protocols and institutional allocators.
RedStone Settle is a settlement layer that allows tokenized real-world assets to be used as collateral in DeFi lending by solving the liquidity mismatch between slow redemption cycles and instant liquidation requirements. When an RWA-backed position is liquidated, the system triggers an on-chain auction where liquidity providers step in to buy the position immediately, delivering liquid assets to the protocol at T+0 while taking on the underlying asset’s redemption timeline. This removes the need for protocols to wait 60 to 180 days to access liquidity, enabling RWAs to function like standard collateral in lending markets without changing their structure.
This allows RWAs to function as collateral inside DeFi lending systems without changing the structure of the underlying asset. Redemption timelines remain intact, and the lending layer gains the execution certainty it requires to safely support leverage.
RedStone Settle extends RedStone’s existing oracle infrastructure, which already prices tokenized real-world assets across institutional-grade markets, including BlackRock’s BUIDL fund issued on-chain via Securitize. That pricing layer now directly informs liquidation triggers and settlement execution, closing the loop between valuation and execution.
