RedStone Guide Sets Out How Tokenized Assets Can Enter DeFi

RedStone published a free guide Nov. 2 for issuers seeking to bring tokenized real-world assets (RWAs) into decentralized finance (DeFi). It maps the work needed to make tokenized holdings usable in lending markets and available for secondary trading.

Token issuance alone does not make an asset suitable as collateral. Lending markets need machine-readable net asset value (NAV) data and risk assessments, while issuers need a liquidity plan for holders when redemptions are delayed. “No curator lists an RWA without a credible exit path,” said Marcin Kazmierczak, RedStone’s co-founder and COO.

An October estimate put the onchain RWA market above $38 billion, with 11% integrated into DeFi markets. Those figures describe different measures of adoption: total onchain market value and the share used in DeFi. The distinction is also reflected in how RWA market value differs from DeFi use.

The guide’s 12-item readiness checklist covers token design, lending-market due diligence, NAV pricing, liquidity planning and secondary trading. Its indicative costs range from low-to-mid five figures for smart-contract or wrapper development to mid-five figures and up for an audit. Oracle setup can cost from the low tens of thousands to six figures. Smaller-scale market making is estimated at about $10,000 per month, plus 10% to 25% of deployed capital.

The guide uses Obligate’s oTFY, a token backed by a revolving trade-finance portfolio, as an example. An October estimate put its market capitalization at about $30 million; $7.18 million was used as collateral on Kamino and $3 million on Morpho. Krzysztof Gogol, PhD, who wrote the guide, is a strategic adviser to Obligate and advised on oTFY’s DeFi integration.

RedStone contributed sections on liquidity before redemption and risk ratings. The proposed process also incorporates the company’s oracle, settlement and risk products. The release outlines a process and estimated costs but does not announce a new issuer integration.