RedStone Revolutionizes Bond Tokenization: Instant Settlement and DeFi for NYLIM's HYB Fund

RedStone has announced the launch of RedStone Settle for the NYLIM Anemoy U.S. High Yield Corporate Bond Segregated Portfolio (HYB), marking a decisive step in the evolution of real asset tokenization. The fund, sub-advised by New York Life Investment Management (NYLIM), a global asset manager with $838 billion under management, and tokenized by Centrifuge, will be the first of its kind to benefit from an instant settlement solution and direct access to DeFi markets.

This integration promises to overcome one of the main obstacles that have so far limited the growth of tokenized funds: the slowness in redemption cycles and the lack of sufficient on-chain liquidity for large-scale operations. With the arrival of RedStone Settle, HYB holders can now count on guaranteed exits in the same block (T+0), paving the way for a new era in the use of institutional assets as DeFi collateral.

The Liquidity Problem in Tokenized Funds
Despite the exponential growth of tokenized real assets -- which surpassed $38 billion in August 2026, according to RWA.xyz -- the sector has encountered a recurring obstacle: redemption times. The exit cycles from these funds can vary from a few days to several months, forcing liquidity providers to demand high fees and making it impossible for lending platforms to open large markets on assets that cannot be liquidated instantly.

This situation has kept institutional credit confined to small sizes on the blockchain, regardless of the scale of the underlying strategies. In particular, while U.S. Treasury debt still represents the largest share of tokenized assets ($16.2 billion), tokenized credit stops at $7.3 billion, indicating that future growth will depend on the ability to scale more complex assets -- those that require immediate settlement.

How RedStone Settle Works
The solution proposed by RedStone eliminates the constraint of on-chain liquidity through a network of verified and whitelisted liquidity providers via KYC. When a liquidation, redemption, or de-leveraging event occurs, an off-chain auction is initiated where providers compete by offering a discount; the provider with the lowest bid wins, and an on-chain executor contract settles the transaction atomically in the same block, or cancels it entirely.

The winning provider will then redeem the shares through the standard issuer process (T+N), earning the spread. This way, there is no need to maintain large pools of on-chain liquidity, the issuer does not have to pre-fund capital, and no operational changes are required. The result? Guaranteed and instant settlement without sacrificing efficiency or security.

Impacts on DeFi and the Institutional Market
This innovation radically changes the economics of on-chain lending. A risk curator who can liquidate collateral at T+0 for a known discount can offer a much higher loan-to-value ratio compared to those facing uncertain and prolonged redemption queues. This translates into greater lending capacity per unit of collateral and deeper markets, based on the certainty of settlement rather than on huge reserves of idle liquidity.

For the HYB fund, this means three new key features:

1. Instant liquidation, promoting adoption by curators on DeFi protocols like Morpho;
2. Immediate redemption, allowing investors to exit early with a predetermined discount, effectively making T+0 a fund originally T+3;
3. Instant de-leveraging in a single transaction.

These capabilities open new sources of demand for HYB shares, retain investors, and promote the growth of assets under management. But the potential of RedStone Settle goes far beyond: the solution can be applied to any settlement event, from the instant resolution of delayed transactions to invoice factoring, to loop redemption strategies, making tokenized real assets as liquid and composable as native crypto tokens.

An Infrastructure Ready for Scalability
According to Marcin Kazmierczak, Co-Founder & COO of RedStone, "tokenization has solved the issuance problem, but not the settlement one -- and it is precisely the settlement that determines whether an asset can scale on-chain with real utility." No curator will accept collateral that cannot be quickly liquidated at a certain price; the ability to exit in a block transforms the tokenized fund into a true scalable market.

RedStone already boasts over three years of collaboration with Morpho, where HYB shares will be used as collateral. Morpho's isolated market structure allows for maintaining specific parameters for HYB, making the shares immediately productive as collateral, without having to wait for new liquidity to arrive.

The platform is asset-agnostic: the same infrastructures can be applied to government bonds, credit, stocks, and tokenized commodities. RedStone is already the pricing layer for institutional strategies like the high-yield one from Neuberger Berman, brought on-chain in August 2026. New assets and liquidity providers are entering the ecosystem, positioning RedStone as the reference settlement infrastructure for digital assets expanding into large-scale on-chain markets.

The Future of Tokenization: Growth and Prospects
The sector of tokenized real assets is in full expansion: the number of holders has surpassed 1.7 million, with a growth of 56% in just one month. Citi estimates $5.5 trillion by 2030, while Standard Chartered predicts $2 trillion by 2028. However, the real challenge to reach these numbers will be the scalability of more complex assets, which require instant and reliable settlement.

With RedStone Settle, the main barrier is removed, paving the way for a new generation of digital financial products capable of attracting institutional capital and fully leveraging the potential of DeFi. Tokenization is no longer just a matter of issuance, but of real integration between traditional finance and on-chain infrastructure, with efficiency, security, and liquidity finally within reach.

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