Securitize, Redstone Pilot ‘Trusted Single Source Oracle’ to Secure Tokenized Fund NAVs

Securitize, one of the largest tokenized asset issuers, and oracle provider RedStone have released a whitepaper they say introduces a new model for securely verifying Net Asset Value (NAV) data on-chain, tailored specifically for tokenized private funds.

The model, dubbed the Trusted Single Source Oracle (TSSO), is designed to address a key gap in decentralized finance (DeFi) infrastructure: how to reliably prove that each NAV update really comes from the trusted source — and hasn’t been tampered with once it’s on-chain.

In traditional crypto markets, oracles pull data from multiple price feeds to guard against manipulation or errors. But for private funds, the NAV is calculated by a single fund administrator. That creates a unique problem: there’s no way to double-check the number through market aggregation. For DeFi protocols that rely on accurate collateral values, this single point of trust has been a sticking point.

The TSSO framework solves this by creating a cryptographically linked chain of NAV updates, according to the whitepaper. Each update includes a secure digital signature, a timestamp, a reference to the previous record, and a hash that locks the sequence together. The system uses two keys: a cold-stored “root key” for major updates and a “chain key” for small, routine changes that stay within tight thresholds. This design aims to balance high security with the practical need to refresh NAV data without constant manual work.

“We need to make sure that we can fully authenticate the information, that we can check that no one is compromising with the data, and we can only rely on a single source. That’s why the whole process needs to be taken to the next level – so that’s the challenge,” said Jakub Wojciechowski, the founder of Redstone, in an interview with CoinDesk.

According to Wojciechowski, Securitize is taking the lead on the development of the product, “building sort of like an internal blockchain, which is a chain with the price updates,” he said. “We know that they will not miss any single price update, because the next price update is cryptographically connected to the previous one.” After that, “once everything is properly signed, we gather the ability to verify that the data truly comes from the source.”

Tokenized funds are widely seen as one of the next big growth areas for blockchain. But their success depends on bridging the trust gap between traditional finance and crypto infrastructure.

While still early, the effort highlights the growing push to build institutional-grade infrastructure for DeFi. If widely adopted, models like TSSO could make it easier for tokenized funds to integrate with on-chain tools.

Securitize said that it is already piloting TSSO with some of its clients, and that it hopes to make significant progress and have it more widely available soon.

“This is open to the industry, but for Securitize, it’s very natural for the assets that we’re dealing with,” said Jorge Serna, the Chief Product and Technology Officer at Securitize. “We have been issuing treasury funds and credit funds for which either we’re the transfer agent or the fund admin or perform both functions, and we are already, for those in particular, publishing the price feeds via Redstone. And so this is something that definitely we want to secure between Securitize and Redstone.”

Read more: Securitize’s Tokenized Credit Fund Set for Solana DeFi Debut as RWA Trend Expands