Securitize Taps RedStone as First Oracle to Power Onchain Funds from BlackRock, Apollo, and More

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Securitize Taps RedStone as First Oracle to Power Onchain Funds from BlackRock, Apollo, and More

The move aims to integrate tokenized assets with DeFi, unlocking new use cases for institutional funds

Institutional tokenization firm Securitize has selected RedStone as its first oracle provider, a significant step toward enhancing its onchain financial products issued by major players like Apollo, BlackRock, Hamilton Lane, and KKR.

Oracles like RedStone supply crucial price feeds and external data to smart contract-driven platforms, bridging the gap between offchain and onchain finance. This integration strengthens the growing real-world asset (RWA) sector, which has seen billions of dollars flow into tokenized financial products—ranging from individual equities to onchain hedge funds. However, the infrastructure to support these assets is still in development.

A Shift Toward DeFi Integration

Before this partnership, Securitize had not incorporated oracles into its ecosystem, as its tokenized funds—such as BlackRock's BUIDL—weren’t utilized in decentralized finance (DeFi). "It was simply a tokenized representation of the fund onchain with no functionality," said Marcin Kazmierczak, RedStone’s COO, in a message to The Block.

Now, RedStone’s oracle integration is set to change that, allowing Securitize-issued funds to interact with DeFi protocols like Compound, Morpho, and Spark. The data feeds will play a key role in expanding use cases, such as using these assets in money market exchanges or as collateral in DeFi lending platforms.

Among the institutional offerings RedStone will support are:

  • Apollo Diversified Credit Securitize Fund (ACRED)
  • BlackRock USD Institutional Digital Liquidity Fund (BUIDL)
  • Hamilton Lane’s Senior Credit Opportunities Fund (SCOPE)

Enhancing Liquidity and Yield Opportunities

Securitize had already taken steps toward DeFi integration with the sToken functionality, launched in November 2024. This feature allowed accredited investors to earn yield on assets like BUIDL and SCOPE while maintaining liquidity via Elixir’s deUSD synthetic dollar. However, the introduction of an oracle significantly broadens the assets’ potential applications, according to a Securitize spokesperson.

After conducting months of extensive research, Securitize chose RedStone as its oracle provider due to its modular architecture, which enables fast and scalable deployment across multiple blockchains. RedStone currently operates on Ethereum, Avalanche, Polygon, TON, Sui, and Fuel.

Unlike older oracles that were primarily built for Ethereum, RedStone was designed to be omnichain from the start. This gives it a competitive edge, as integrating interoperability solutions for crosschain support often introduces additional failure points or network redeployments.

Reliability and Security at the Core

Beyond its scalability and efficiency, RedStone offers several advantages, such as leveraging Arweave for permanent data storage. Notably, the oracle system has yet to experience downtime or a mispricing event—a crucial factor in maintaining trust in financial data feeds.

RedStone’s momentum has been fueled by investment as well. In July 2024, it secured $15 million in Series A funding, led by Arrington Capital, and just last week, it launched its RED token.

As the tokenization of real-world assets accelerates, the integration of advanced oracles like RedStone is expected to further bridge the gap between traditional finance and DeFi, unlocking new opportunities for institutional investors.

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