RedStone announced on Sept. 1 that it is integrating its Settle service with the NYLIM Anemoy U.S. High Yield Corporate Bond Segregated Portfolio, known by the ticker HYB, to give holders same-block exits through offchain auctions lasting roughly 300 milliseconds. HYB is issued through Centrifuge and is the first tokenized fund sub-advised by New York Life Investment Management, which RedStone said manages $838 billion in assets, up from about $807 billion when the fund launched in June.
Under the current structure, HYB subscriptions and redemptions settle in USDC, but the fund’s underlying redemption period remains T+3. RedStone Settle does not change that timeline. Instead, it transfers the waiting period to an approved liquidity provider. KYC-verified and whitelisted solvers bid on the discount they require from the HYB reference price. The bid closest to a 0% discount wins, and the seller receives the price nearest to the fund unit’s calculated value. The auction lasts approximately 300 milliseconds, and once it ends, RedStone combines its latest price update and the liquidation or sale instruction in one atomic onchain transaction.
RedStone co-founder and COO Marcin Kazmierczak said the design prevents front-running because price submission and execution happen together rather than through separate transactions. Winning solvers have bonded deposits that can be slashed if they fail to supply promised capital. The solver later redeems the acquired HYB units through the issuer’s standard T+3 process and keeps the auction discount as compensation. Prefunded vaults also join auctions to provide backstop liquidity if direct solver participation is insufficient.
Because high-yield corporate bonds do not trade continuously like cryptocurrencies, the HYB auction starts from administrator-derived net asset value data rather than a round-the-clock spot price. Kazmierczak noted RedStone’s fundamental price feed uses NAV data from the fund administrator, while solver bids account for the cost and risk of waiting through the redemption period. The service can process voluntary redemptions and deleveraging transactions, not only loan liquidations.
RedStone said HYB units will be made available as collateral in markets built on Morpho, a decentralized lending protocol with isolated pools. Each Morpho market can set separate collateral assets, loan-to-value limits, and liquidation parameters, potentially allowing eligible holders to borrow against HYB instead of selling. Lending curators can use the auction’s settlement terms when deciding how much credit to extend. In May, Morpho’s lending infrastructure expanded to Tempo, where Gauntlet and Sentora introduced curated markets and RedStone supplied price feeds for stablecoins and tokenized real-world assets.
“Tokenization solved issuance. It did not solve settlement — and settlement is what defines whether an asset scales onchain with broader utility,” Kazmierczak said. He added that lending market curators need confidence that liquidators can dispose of collateral when a loan becomes undercollateralized.
RedStone said the mechanism can apply to any tokenized fund with fixed redemption windows, KYC or business-verification whitelists, reliable NAV feeds, and clear redemption terms. It is already pricing other Centrifuge-issued funds including deJAAA and deJTRSY. The announcement cited RWA.xyz data placing tokenized real-world assets above $38 billion in August, compared with about $5.4 billion in early 2025. Tokenized U.S. government debt stood at $16.2 billion and tokenized credit at $7.3 billion. Citi has projected tokenized assets could reach $5.5 trillion by 2030, while Standard Chartered has estimated $2 trillion by 2028.
