RedStone brings instant exits to NYLIM tokenized bond fund

The integration with the NYLIM Anemoy U.S. High Yield Corporate Bond Segregated Portfolio, or HYB, aims to bridge the gap between tokenized assets and real-time liquidity. While the fund’s underlying redemption period remains T+3, RedStone’s Settle service shifts this waiting period to KYC-verified liquidity providers, known as solvers. These participants bid on the discount required to acquire the units, ensuring that sellers receive capital within a single atomic onchain transaction.

This structure addresses the friction inherent in tokenized credit, where the lack of continuous trading often complicates collateral liquidation. By using net asset value data from the fund administrator, the system provides a defensible pricing mechanism for assets that do not trade on public exchanges. To mitigate risks during market stress, RedStone has incorporated prefunded vaults to serve as a backstop when private liquidity is insufficient. The initiative also enables HYB units to function as collateral within Morpho’s decentralized lending pools, allowing curators to set precise credit limits based on known settlement terms.