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Tokenized real-world assets are supposed to bring Wall Street efficiency to DeFi. In practice, they’ve introduced one of Wall Street’s least charming features: waiting. Funds backed by corporate bonds, treasuries, and credit portfolios routinely take three to five business days, sometimes longer, to process redemptions. That timeline works fine in traditional finance. It’s a dealbreaker for lending protocols that need to liquidate collateral in minutes, not weeks.
RedStone Settle, an on-chain auction-based settlement layer from oracle provider RedStone, is designed to close exactly that gap. The system enables T+0 exits for tokenized fund positions, starting with Centrifuge’s HYB fund, a tokenized corporate bond strategy launched in partnership with New York Life Investment Management.
How RedStone Settle actually works
RedStone Settle introduces a layer of KYC-verified solvers, essentially market makers who step in to buy tokenized fund positions on the spot. These solvers absorb the redemption delay themselves, paying the seller immediately in exchange for a spread. The system integrates with RedStone’s existing oracle price feeds and launched with Symbiotic as an initial liquidity partner.
The HYB fund and why it matters
Centrifuge’s HYB fund debuted on June 30, 2026, and represents New York Life Investment Management’s first tokenized corporate bond strategy. NYLIM manages roughly $807 billion in assets, making this a significant institutional entry into tokenized finance rather than a crypto-native experiment.
The fund operates under a BVI segregated portfolio structure with subscriptions and redemptions denominated in USDC. Under normal circumstances, redemptions take T+3 to T+5. With RedStone Settle in the picture, a lending protocol using HYB shares as collateral can liquidate those positions same-day. The solver network handles the temporal mismatch. The protocol gets its USDC. The solver gets a modest spread for fronting the capital.
The HYB fund received an A risk rating from Particula on August 20, 2026, which signals institutional-grade creditworthiness.
The bigger picture for tokenized RWAs in DeFi
Centrifuge has facilitated over $2 billion in tokenized RWAs on its platform to date. The broader on-chain RWA market reached approximately $30 billion by early-to-mid 2026, with only a small fraction of tokenized assets actively used as collateral in DeFi lending.
RedStone Settle isn’t the only project tackling this friction. Fission announced independent 24/7 USDC liquidity access for Centrifuge funds on August 25, 2026, enabling immediate exits without institutional waiting periods.
The mGLOBAL vault, another product in the ecosystem, reached $33 million in total value locked shortly after launch.
Accurate, real-time pricing of fund shares determines whether auction outcomes are fair for both sides of the trade. Getting that pricing right, in a way that adjusts dynamically based on fund liquidity and market conditions, is where RedStone’s oracle infrastructure becomes crucial.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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