Securitize RedStone Introduce Trusted Single Source Oracle for Tokenized Funds

Securitize, a prominent issuer of tokenized assets, and RedStone, an
provider, have jointly released a whitepaper introducing a novel model for securely verifying Net Asset Value (NAV) data on-chain. This model is specifically designed for tokenized private funds, addressing a critical gap in decentralized finance (DeFi) infrastructure. The model, named the Trusted Single Source Oracle (TSSO), aims to ensure that each NAV update is reliably proven to come from a trusted source and has not been tampered with once it is on-chain.In traditional crypto markets, oracles aggregate data from multiple price feeds to prevent manipulation or errors. However, for private funds, the NAV is calculated by a single fund administrator, creating a unique challenge. There is no way to double-check the NAV through market aggregation, which poses a significant risk for DeFi protocols that rely on accurate collateral values. The TSSO framework addresses this issue by creating a cryptographically linked chain of NAV updates. Each update includes a secure digital signature, a timestamp, a reference to the previous record, and a hash that locks the sequence together. The system uses two keys: a cold-stored “root key” for major updates and a “chain key” for small, routine changes that stay within tight thresholds. This design balances high security with the practical need to refresh NAV data without constant manual intervention.
Jakub Wojciechowski, the founder of RedStone, emphasized the importance of fully authenticating the information and ensuring that no one compromises the data. He noted that Securitize is leading the development of the product, building an internal blockchain with price updates. Each price update is cryptographically connected to the previous one, ensuring that no update is missed. Once everything is properly signed, the system can verify that the data truly comes from the source. This approach is crucial for tokenized funds, which are seen as one of the next big growth areas for blockchain. Their success depends on bridging the trust gap between traditional finance and crypto infrastructure.
While still in its early stages, the effort highlights the growing push to build institutional-grade infrastructure for DeFi. If widely adopted, models like TSSO could make it easier for tokenized funds to integrate with on-chain tools. Securitize is already piloting TSSO with some of its clients and hopes to make significant progress and have it more widely available soon. Jorge Serna, the Chief Product and Technology Officer at Securitize, stated that this model is particularly natural for the assets Securitize deals with, as they are already publishing price feeds via RedStone for treasury and credit funds. Securitize aims to secure this process between itself and RedStone, ensuring the integrity and reliability of the NAV data on-chain.

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