RedStone, the Swiss-based oracle provider, launched RedStone Settle on April 28, 2026, to fix exactly this problem. The platform provides on-demand liquidation settlement infrastructure built specifically for tokenized RWAs in DeFi lending protocols, targeting roughly $30 billion in currently idle tokenized assets that can’t be efficiently used as collateral because of their redemption timelines.
The redemption timing problem, explained
DeFi lending works because liquidations are instant. When a borrower’s collateral drops below a certain threshold, the protocol sells it immediately to make lenders whole. This works beautifully for Bitcoin, ETH, and other liquid tokens that can be sold on-chain in a single block.
Tokenized real-world assets play by different rules. A tokenized money market fund, a tokenized treasury position, or a tokenized private credit instrument might have a redemption window of 60 to 180 days. If a lending protocol needs to liquidate that collateral, it could be waiting half a year to actually convert it into something usable.
The RWA market on Ethereum surpassed $25 billion in early 2026, but a huge chunk of those assets sit idle because protocols can’t safely accept them as collateral.
