Redstone launches a settlement layer to address the RWA liquidity gap in DeFi lending

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CryptoWorld News reports that Redstone has launched a new settlement layer called Redstone Settle, aimed at resolving the conflict between fast liquidations and slow asset redemptions in decentralized finance (DeFi) lending. This structural issue has hindered the use of tokenized real-world assets (RWAs) as collateral. Redstone states that the new layer introduces an on-chain auction mechanism, allowing liquidity providers to immediately step in during liquidation events to purchase positions, provide liquidity, and bear the risk of delayed redemptions. The company expects this approach to unlock over $30 billion in idle tokenized RWAs while improving the efficiency of users generating lending positions and yields. According to RWA.xyz data, excluding stablecoins, the valuation of tokenized real-world assets exceeds $30 billion, primarily dominated by products such as U.S. Treasuries and private credit.

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