Securitize, a company specializing in the tokenization of real-world assets (RWAs), has chosen RedStone to serve as the main oracle provider for its tokenized offerings, which feature BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and the Apollo Diversified Credit Securitize Fund (ACRED).
As stated in a March 12 announcement, RedStone will provide price feeds for both current and future tokenized products from Securitize. Acting as a DeFi-centric oracle provider, RedStone aims to broaden the applications of BUIDL and ACRED within money market exchanges and collateralized DeFi platforms, according to Securitize.
RedStone offers cross-chain data feeds for decentralized finance protocols operating on Ethereum, Avalanche, and Polygon. According to data from DefiLlama, it has secured a total value of $4.3 billion across all its clients.
RedStone’s total value secured as of March 11.
In July, RedStone completed a Series A funding round, raising $15 million under the leadership of Arrington Capital, with additional contributions from Spartan, IOSG Ventures, HTX Ventures, among others.
Securitize chose RedStone for its oracle services due to its “modular design,” which allows it to “scale to thousands of chains and support new implementations in just a few days,” said RedStone’s chief operating officer, Marcin Kazmierczak, in a written statement.
With the integration of RedStone’s oracle price feeds, Securitize’s funds “can now be utilized across DeFi protocols like Morpho, Compound, or Spark,” he elaborated.
Related: BlackRock’s CEO urges SEC for swift approval of bond and stock tokenization: Implications for crypto
Rising institutional interest in tokenized assets
Carlos Domingo, co-founder and CEO of Securitize, shared that interest in tokenized funds is on the rise among a “diverse range of investors and entities,” encompassing both traditional finance and crypto-focused companies.
“Institutional investors, private equity firms, and credit managers are embracing tokenization to boost efficiency, minimize operational hurdles, and enhance liquidity in private markets,” he noted.
On the crypto-native front, enterprises “regard tokenized RWAs as a safe and efficient solution for managing treasury reserves while gaining stable returns,” Domingo explained.
So far, the realm of private credit and U.S. Treasury bonds has witnessed the most interest in tokenization, based on industry analysis. The overall market for on-chain RWAs is nearing $18 billion, experiencing a growth of 16.8% in the last 30 days, according to RWA.xyz.
Private credit makes up 68% of the tokenized RWA market at $12.1 billion.
Additional data from Security Token Market indicated that over $50 billion in assets had been tokenized by the close of 2024, predominantly in real estate.
The tokenization sector has drawn attention from major players in recent years, with companies such as Ondo Finance, Tradable, and Brickken entering the market.
Related: Policies from the Trump era may drive a surge in tokenized real-world assets