Centrifuge HYB tokenized credit adds RedStone Settle for instant exits
Centrifuge said its HYB tokenized credit product is integrating RedStone Settle, a move the companies say will allow T+0 exits for the fund and make the tokenized position more usable in DeFi settings.
RedStone described the setup as an auction-based settlement layer designed to connect liquidity providers with tokenized fund holders. In the company’s account, the system lets sellers receive USDC immediately while the underlying redemption process continues in the background.
NYLIM’s first tokenized fund sits behind the HYB ticker
HYB refers to New York Life Investment Management’s U.S. High Yield Bond Fund, which Centrifuge tokenized. RedStone said the fund is sub-advised by NYLIM, which it described as a global asset manager with $838 billion in assets under management.
The RedStone post said the integration is meant to address the gap between the fund’s native redemption timeline and DeFi’s expectation of instant settlement. Under the structure described by RedStone, HYB still follows its normal redemption process, but a liquidity provider can step in to front capital and take on the delayed settlement.
How the settlement layer is meant to work
According to RedStone, the Settle mechanism uses KYC-verified liquidity providers, or solvers, who buy tokenized fund positions and complete the regular redemption later. The company said that approach allows holders to exit at T+0 while preserving the fund’s underlying process.
Centrifuge said the same instant-liquidity structure can make tokenized credit more useful as onchain collateral. In its post, the project said RedStone Settle connects liquidity providers through an auction-based settlement layer and enables T+0 exits for HYB.
RedStone also said the integration is designed to support DeFi lending use cases, including liquidations in Morpho markets. The company said the first Morpho vault for HYB is expected to launch soon under Steakhouse Financial curation.
A targeted bridge between tokenized credit and DeFi
The announcement is narrow in scope, but it shows how tokenized fund wrappers are being paired with settlement tools built for blockchain markets. In this case, the change is not to the underlying credit portfolio itself. It is to the exit path around it.
For HYB holders, the practical difference is that RedStone and Centrifuge are presenting a route to immediate liquidity without waiting for the fund’s standard redemption cycle. For DeFi users, the companies are framing the integration as a way to make a tokenized bond fund easier to use as collateral inside lending markets.
