RedStone launches same‑block exit service for NYLIM’s tokenized HYB fund

RedStone announced that its Settle platform will integrate with Centrifuge’s tokenized NYLIM U.S. high‑yield bond fund, ticker HYB, to offer same‑block exits for token holders. The service replaces the standard T+3 redemption period with an off‑chain auction that lasts roughly 300 milliseconds, allowing immediate liquidity for sellers.

How the instant exit works

When a position is eligible for liquidation, RedStone runs an off‑chain auction. KYC‑approved liquidity providers, called solvers, submit the discount they require from the fund’s reference price. The bid closest to a 0 % discount wins, and the winning solver supplies the capital, receives the HYB units, and later redeems them through the fund’s normal T+3 process. The auction result and price update are combined into a single atomic on‑chain transaction, preventing front‑running and ensuring that the entire operation either succeeds or reverts.

Liquidity safeguards

RedStone requires solvers to post bonded deposits that can be slashed if they fail to provide the promised funds. Prefunded vaults act as back‑stop liquidity, joining auctions when insufficient solver participation occurs.

Pricing methodology

Because high‑yield corporate bonds do not trade continuously, the auction starts from a net asset value (NAV) derived from the fund administrator’s data. Solver bids reflect the discount needed to cover the waiting period and associated risk.

Integration with lending protocols

HYB units will be usable as collateral on Morpho’s isolated lending markets, which can set separate loan‑to‑value limits and liquidation parameters. Curators can rely on the known settlement terms when determining credit limits.

Broader implications

The Settle model does not require a large on‑chain liquidity pool or additional capital from Centrifuge or NYLIM. It demonstrates a pathway for tokenized real‑world assets to achieve faster settlement, a key hurdle for broader on‑chain utility.