Securitize Partners RedStone to Expand Tokenized Asset Use Cases

Securitize, a leading real-world asset (RWA) tokenization company, has announced a strategic partnership with RedStone, a DeFi-focused oracle provider. This collaboration is set to enhance the utility of Securitize's tokenized products, including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and the Apollo Diversified Credit Securitize Fund (ACRED), by integrating RedStone's price feeds. This move is expected to expand the use cases of these tokenized assets into money market exchanges and collateralized DeFi platforms.

RedStone, known for its crosschain data feeds for decentralized finance protocols on Ethereum, Avalanche, and Polygon, will provide the necessary price feeds for Securitize's current and future tokenized products. This partnership is significant as it leverages RedStone's "modular design," which allows for scalability across thousands of chains and supports new implementations swiftly. This capability is crucial for Securitize, as it enables the seamless integration of its funds into various DeFi protocols such as Morpho, Compound, or Spark.

The selection of RedStone as the oracle provider was driven by its ability to deliver reliable and efficient price feeds, which are essential for the functioning of tokenized assets in the DeFi ecosystem. By utilizing RedStone's oracle price feeds, Securitize's funds can now be utilized across a broader range of DeFi protocols, thereby enhancing their liquidity and operational efficiency.

The demand for tokenized funds is on the rise, with a diverse range of investors and users, including traditional finance and crypto-native firms, showing interest. Institutional investors, private equity firms, and credit managers are increasingly turning to tokenization to enhance efficiency, reduce operational friction, and improve liquidity for private markets. On the crypto-native side, companies view tokenized RWAs as a secure and efficient way to manage treasury reserves while benefiting from stable yields.

The tokenization of private credit and US Treasury bonds has seen significant uptake, with the total market for onchain RWAs approaching $18 billion. This growth highlights the increasing acceptance and adoption of tokenized assets in the financial landscape. The tokenization market has attracted significant players, including Ondo Finance, Tradable, and Brickken, further validating its potential and relevance in the financial sector.