Securitize Partners with RedStone for DeFi Tokenization Innovation

In a significant move for the decentralized finance (DeFi) landscape, Securitize, a leading real-world asset (RWA) tokenization company, has announced its partnership with RedStone as the primary oracle provider for its innovative tokenized products. This collaboration aims to enhance the functionality and accessibility of tokenized funds, including the highly anticipated BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and the Apollo Diversified Credit Securitize Fund (ACRED).

RedStone’s Role in Tokenization

According to a March 12 announcement, RedStone will deliver essential price feeds for both current and future tokenized products offered by Securitize. As a DeFi-focused oracle provider, RedStone is set to expand the use cases of BUIDL and ACRED into various money market exchanges and collateralized DeFi platforms. This integration is expected to significantly enhance liquidity and operational efficiency within the tokenized asset space.

Cross-Chain Data Feeds

RedStone specializes in providing cross-chain data feeds for decentralized finance protocols across multiple blockchain networks, including Ethereum, Avalanche, and Polygon. As per data from DefiLlama, RedStone has successfully secured a total value of $4.3 billion across all its clients, showcasing its robust capabilities in the DeFi ecosystem.

Funding and Growth

In July, RedStone raised an impressive $15 million in a funding round led by Arrington Capital, with notable participation from other investors such as Spartan, IOSG Ventures, and HTX Ventures. This influx of capital is expected to bolster RedStone’s operations and further its mission to provide reliable and scalable oracle solutions for the DeFi market.

Why Securitize Chose RedStone

Securitize’s decision to select RedStone as its oracle provider stems from the latter’s “modular design.” This design allows RedStone to scale to thousands of chains and support new implementations within a matter of days, making it an ideal partner for Securitize’s ambitious tokenization goals. Marcin Kazmierczak, RedStone’s chief operating officer, emphasized this adaptability in a statement to Cointelegraph.

Growing Demand for Tokenization

According to Securitize co-founder and CEO Carlos Domingo, the demand for tokenization is surging across a diverse range of investors and users, spanning both traditional finance and crypto-native firms. He noted that institutional investors, private equity firms, and credit managers are increasingly turning to tokenization as a means to enhance efficiency, reduce operational friction, and improve liquidity in private markets.

Tokenized RWAs in Focus

On the crypto-native side, companies are recognizing tokenized RWAs as a secure and efficient method for managing treasury reserves while benefiting from stable yields. Domingo highlighted that the tokenization of private credit and US Treasury bonds has seen the most significant uptake, according to industry data.

Market Growth and Future Prospects

The total market for on-chain RWAs is approaching a remarkable $18 billion, having experienced a growth rate of 16.8% over the past 30 days, as reported by RWA.xyz. This rapid expansion underscores the increasing interest and investment in tokenized assets, positioning Securitize and RedStone at the forefront of this evolving market.

Conclusion

As the DeFi landscape continues to evolve, the partnership between Securitize and RedStone represents a pivotal step towards enhancing the accessibility and functionality of tokenized funds. With the growing demand for tokenization among institutional and crypto-native investors, this collaboration is poised to drive significant advancements in the way real-world assets are managed and traded in the digital realm. For more insights on this topic, check out the original article here.