Key Takeaways
- • RedStone Settle integrates with Centrifuge's tokenized NYLIM U.S. High Yield Corporate Bond Fund (HYB) to enable T+0 same-block exits, eliminating the standard T+3 redemption lag through offchain Dutch auctions lasting approximately 300 milliseconds.
- • New York Life Investment Management, which manages $838 billion in assets, sub-advises HYB—the first tokenized fund launched by NYLIM on the Centrifuge protocol in June 2026, with AUM growth of $31 billion since inception.
- • RedStone's mechanism transfers the T+3 waiting period to KYC-approved liquidity providers who bid on a discount to purchase fund units immediately, with atomic transactions and bonded solver deposits designed to prevent settlement failure and front-running.
- • Prefunded vaults supply backstop liquidity when direct liquidity provider participation is insufficient, creating a hybrid model that bridges traditional finance redemption cycles with on-chain settlement infrastructure.
- • The integration positions HYB for use as collateral in decentralized finance protocols such as Morpho, expanding composability and utility of the tokenized fund within the broader DeFi ecosystem.
Summary
RedStone announced on September 1, 2026, the integration of its Settle service with the NYLIM Anemoy U.S. High Yield Corporate Bond Segregated Portfolio (HYB), a tokenized fund sub-advised by New York Life Investment Management through the Centrifuge protocol. The integration delivers same-block exits for fund holders, lending protocols, and liquidators seeking to exit positions within a single blockchain transaction, addressing a structural friction point in tokenized traditional finance products.
HYB launched in June 2026 and represents the first tokenized fund sub-advised by NYLIM, which manages $838 billion in assets according to RedStone's announcement—a figure representing $31 billion of growth since the fund's inception. The fund's underlying redemption cycle remains T+3 (three business days), consistent with standard mutual fund settlement practices. RedStone Settle effectively converts this into T+0 by introducing immediate liquidity through a market mechanism rather than accelerating the fund's operational settlement.
The technical architecture employs a 300-millisecond offchain Dutch auction, according to RedStone co-founder and COO Marcin Kazmierczak. When HYB units become eligible for liquidation, KYC-approved liquidity providers participate in the auction and bid on the discount they require to take immediate possession of the units. The liquidity provider then holds the units through the fund's standard T+3 redemption period, effectively arbitraging the spread between immediate and forward settlement. Atomic transactions and bonded solver deposits serve as safeguards against settlement failures and front-running, while prefunded vaults supply backstop liquidity during periods of insufficient direct participation.
This structure decouples redemption speed from fund operational constraints, allowing HYB to maintain compliance with traditional finance settlement practices while enabling instant onchain exits. The integration also unlocks DeFi composability; the tokenized units become eligible collateral for protocols such as Morpho, expanding the utility of NYLIM's fund within decentralized lending ecosystems. For institutional investors and alternative fund managers tracking tokenized asset trends, this integration demonstrates a scalable pattern for bridging traditional fund structures with blockchain-native liquidity infrastructure.
HYB launched in June 2026 and represents the first tokenized fund sub-advised by NYLIM, which manages $838 billion in assets according to RedStone's announcement—a figure representing $31 billion of growth since the fund's inception. The fund's underlying redemption cycle remains T+3 (three business days), consistent with standard mutual fund settlement practices. RedStone Settle effectively converts this into T+0 by introducing immediate liquidity through a market mechanism rather than accelerating the fund's operational settlement.
The technical architecture employs a 300-millisecond offchain Dutch auction, according to RedStone co-founder and COO Marcin Kazmierczak. When HYB units become eligible for liquidation, KYC-approved liquidity providers participate in the auction and bid on the discount they require to take immediate possession of the units. The liquidity provider then holds the units through the fund's standard T+3 redemption period, effectively arbitraging the spread between immediate and forward settlement. Atomic transactions and bonded solver deposits serve as safeguards against settlement failures and front-running, while prefunded vaults supply backstop liquidity during periods of insufficient direct participation.
This structure decouples redemption speed from fund operational constraints, allowing HYB to maintain compliance with traditional finance settlement practices while enabling instant onchain exits. The integration also unlocks DeFi composability; the tokenized units become eligible collateral for protocols such as Morpho, expanding the utility of NYLIM's fund within decentralized lending ecosystems. For institutional investors and alternative fund managers tracking tokenized asset trends, this integration demonstrates a scalable pattern for bridging traditional fund structures with blockchain-native liquidity infrastructure.
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