Securitize, a prominent player in real-world asset (RWA) tokenization, has recently announced its collaboration with RedStone, selecting the innovative oracle provider as the primary source for price feeds associated with its tokenized products. This partnership is set to expand the reach of significant funds, including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and the Apollo Diversified Credit Securitize Fund (ACRED), into decentralized finance (DeFi) platforms.
In a statement made on March 12, Securitize highlighted how RedStone, recognized for its DeFi-centric solutions, will facilitate various use cases for the BUIDL and ACRED funds by making them accessible across money market exchanges and collateralized DeFi platforms. This development is poised to enhance liquidity and operational efficiency for these tokenized assets.
RedStone’s offerings include cross-chain data feeds for key decentralized finance protocols on blockchains such as Ethereum, Avalanche, and Polygon. Remarkably, the firm has secured a total of $4.3 billion in value across its client base, as per DefiLlama data.
RedStone’s total value secured as of March 11. Source: DefiLlama
With a successful Series A funding round in July, raising $15 million led by Arrington Capital, RedStone is positioned with the resources necessary to bolster its services. The company’s approach, characterized by a “modular design,” allows it to seamlessly scale to thousands of chains and adapt to new implementations in a matter of days, as noted by RedStone’s Chief Operating Officer, Marcin Kazmierczak.
This integration means that Securitize’s funds will now find applicability across widely used DeFi protocols like Morpho, Compound, and Spark, expanding the operational landscape for tokenized assets.
Growing Institutional Interest in Tokenized Assets
As demand for tokenized funds surges, Securitize’s co-founder and CEO Carlos Domingo recently stated that institutional investors, private equity firms, and credit management entities are increasingly looking towards tokenization as a means to enhance efficiency, alleviate operational friction, and improve liquidity in private markets. On the crypto-native front, organizations are recognizing tokenized RWAs as a secure, efficient strategy for treasury management while enjoying stable yields.
The interest in tokenization has notably surged within private credit and US Treasury bonds, which have seen significant uptake in recent months. The overall market for on-chain RWAs is approaching a valuation of $18 billion, having experienced a remarkable growth of 16.8% within the last month, as per recent reports from RWA.xyz.
Private credit accounts for 68% of the tokenized RWA market with a value of $12.1 billion. Source: RWA.xyz
Separate insights from the Security Token Market indicate that more than $50 billion worth of assets were tokenized at the end of 2024, with real estate assets constituting a significant portion. The tokenization space has attracted notable players such as Ondo Finance and Tradable, signaling a growing trend in leveraging blockchain technology for asset management.
In conclusion, as Securitize and RedStone pave the way for enhanced liquidity and operational efficiency in the realms of tokenized funds and DeFi, the trend reflects a larger shift in how traditional finance intersects with innovative blockchain solutions, highlighting the potential for transformative growth within the asset management sector.
