ReStone launched Settle, an on-demand settlement infrastructure designed to solve one of the most critical problems in DeFi lending with real-world assets as collateral.
Tokenized assets —Treasury bonds, private credit, money market funds— have reached unprecedented levels of institutional adoption, with projections placing this market at $400 billion by end of 2026. However, the liquidation model that works for native crypto collateral breaks down when applied to RWAs: DEX pools are too shallow, compliance restrictions eliminate most potential liquidators, and redemption windows can stretch between 60 and 180 days, making forced exits impossible.
RedStone Settle addresses this through an on-demand auction system. When a position falls below the liquidation threshold, the protocol immediately triggers an auction. Specialized solvers, previously KYC-verified and cleared for each type of RWA token, compete to offer the best liquidation rate. The winning solver closes the position in a single atomic transaction, with T+0 settlement and no redemption windows. The solver, in turn, waits through the underlying redemption period and captures the spread between the discounted liquidation price and the face value at maturity.
The solution is built on the RedStone Atom architecture, launched in July 2025, which demonstrated that large-scale auctions can execute in under 300 milliseconds with no disruptions or pricing errors. RedStone already operates as the oracle layer for institutional infrastructure, including BlackRock’s BUIDL fund through Securitize. Settle is the natural extension of that position within the RWA ecosystem.
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