DeFi & NFT

Story: RedStone Settle Layer Targets $30B RWA Collateral Gap in DeFi

By Evie Vavasseur

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Why RWA Collateral Has Been So Hard. The problem isn't new. People have been talking about tokenizing real-world assets for years.

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What RedStone Is Actually Building. Strip away the marketing language and Settle is trying to do something genuinely hard: build a…

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Execution Is Everything Now. RedStone has framed Settle as a "pioneering solution." Maybe.

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RedStone just launched something called "Settle." It's a new settlement layer built specifically for tokenized real-world assets — and the company is eyeing a $30 billion market.

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The pitch is pretty direct. DeFi lending protocols have always struggled to accept physical assets as collateral.

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But it's never been that clean in practice. Legal frameworks around asset ownership don't map neatly onto smart contracts. Liquidity for tokenized physical assets is murky at best.

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RedStone is betting Settle can cut through that. The layer is designed to handle the conversion of tangible assets into digital tokens in a way that's structured enough for…

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RedStone hasn't disclosed the specific technical mechanisms behind Settle's tokenization process.

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Strip away the marketing language and Settle is trying to do something genuinely hard: build a bridge between traditional finance infrastructure and decentralized lending.

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More context: Schwab Opens BTC and ETH Trading to U.S. Clients in Major Platform Shift

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The platform wants to make tokenized RWAs a "viable form of DeFi collateral." That's the phrase RedStone keeps coming back to. Viable.

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That's a tall order. And RedStone hasn't said yet how it plans to integrate with the DeFi protocols already operating at scale.

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DeFi's collateral problem is real, though. The space has leaned heavily on crypto-native assets — ETH, BTC, stablecoins — because those are easy to price and liquidate on-chain.

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The $30 billion target isn't a random number. It reflects a real pool of assets that could, in theory, move on-chain if the infrastructure existed to support them.

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RedStone has framed Settle as a "pioneering solution." Maybe. The tokenization space has seen plenty of pioneering solutions that ran into walls when regulators got involved or…

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