RedStone - Infrastructure to empower RWA and DeFi
Proof of Reserve (PoR) is a cryptographic process that lets crypto custodians, such as, exchanges, stablecoin issuers, wrapped token platforms, and tokenized fund managers, prove they control assets equal to or greater than the liabilities owed to token holders.
The idea gained urgency after the FTX collapse in November 2022, when customers discovered they had no independent way to confirm their deposits were actually backed.
Traditional PoR relies on periodic snapshots: custodians hash balances into a Merkle tree, publish the root onchain, and allow users to check their own inclusion. While an improvement, these reports are not full audits, can be timed or manipulated, and often hide risks like rehypothecation.
Oracle-based PoR works differently by operating continuously: an oracle network pulls live reserve data from wallets or custodians, compares it in real time to the circulating token supply, and publishes verifiable feeds.
Solutions like RedStone deliver frequent attestations, sometimes every 20 minutes, powering data for Bitcoin LSTs with roughly $1.5 billion in TVL, stablecoins, tokenized RWA, and dozens of DeFi protocols. Smart contracts can then automatically enforce safeguards, if reserves fall short, minting halts, borrowing pauses, or other protections activate. This programmable, always-on verification is seen as essential for scaling RWA.
Tokenized instruments like US Treasuries have already reached a $15 billion market, with major funds exceeding $2.5 billion, but they require constant proof that onchain supply matches offchain value to earn institutional trust.
Without reliable PoR, these assets risk repeating past solvency doubts. By turning verification into enforceable onchain infrastructure, continuous oracle solutions like RedStone remove a key barrier to mainstream tokenization and help convert offchain value into transparently backed digital markets.
It will be trillions, and RedStone will benefit from being a true data layer that serves as the infrastructure for everything!
$RED
Proof of Reserve (PoR) is a cryptographic process that lets crypto custodians, such as, exchanges, stablecoin issuers, wrapped token platforms, and tokenized fund managers, prove they control assets equal to or greater than the liabilities owed to token holders.
The idea gained urgency after the FTX collapse in November 2022, when customers discovered they had no independent way to confirm their deposits were actually backed.
Traditional PoR relies on periodic snapshots: custodians hash balances into a Merkle tree, publish the root onchain, and allow users to check their own inclusion. While an improvement, these reports are not full audits, can be timed or manipulated, and often hide risks like rehypothecation.
Oracle-based PoR works differently by operating continuously: an oracle network pulls live reserve data from wallets or custodians, compares it in real time to the circulating token supply, and publishes verifiable feeds.
Solutions like RedStone deliver frequent attestations, sometimes every 20 minutes, powering data for Bitcoin LSTs with roughly $1.5 billion in TVL, stablecoins, tokenized RWA, and dozens of DeFi protocols. Smart contracts can then automatically enforce safeguards, if reserves fall short, minting halts, borrowing pauses, or other protections activate. This programmable, always-on verification is seen as essential for scaling RWA.
Tokenized instruments like US Treasuries have already reached a $15 billion market, with major funds exceeding $2.5 billion, but they require constant proof that onchain supply matches offchain value to earn institutional trust.
Without reliable PoR, these assets risk repeating past solvency doubts. By turning verification into enforceable onchain infrastructure, continuous oracle solutions like RedStone remove a key barrier to mainstream tokenization and help convert offchain value into transparently backed digital markets.
It will be trillions, and RedStone will benefit from being a true data layer that serves as the infrastructure for everything!
$RED
