RedStone Says Standardization, Real-Time Risk Assessment Are Key to Expanding RWA Market

Minseung Kang

Summary

RedStone said regulatory compliance and identity verification matter more than simple issuance in real-world asset (RWA) tokenization.
RedStone said it introduced RedStone Live, a real-time price-feed solution, to support institutional investors in asset valuation and management with data delivered in less than one second of latency.
RedStone said its risk assessment system grades asset and protocol risk, and that real-time risk updates and links to lending and insurance protocols could help broaden institutional participation.

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*Chris Wong, an account manager at RedStone, delivers a keynote speech at the AI/InfraCon event held at Dreamplus in Seoul's Gangnam district on Aug. 15. Photo: Kang Min-seung, BlockMedia reporter*

"In real-world asset, or RWA, tokenization, regulatory compliance matters more than issuance itself, and real-time data and risk assessment frameworks will determine institutional participation."

AI/InfraCon, an event focused on AI and Web3 infrastructure use cases, was held on Aug. 15 at Dreamplus in Seoul's Gangnam district. The event, part of BUIDL Week, covered topics including perpetual decentralized exchanges, RWAs and stablecoins. Chris Wong, an account manager at RedStone, made the remarks during a presentation on tokenization and RWA standards.

Wong said standardization has driven market expansion throughout the development of financial infrastructure. He said Swift improved the efficiency of cross-border transfers and that standardized securities data helped expand trading volumes, arguing blockchain will also need standards to play a similar role. The main challenge in tokenization today is not issuance itself, he said, but regulatory compliance and identity verification. How regulatory logic is designed will determine how far it can connect with decentralized finance, he added.

RedStone recently introduced RedStone Live, a real-time price-feed solution aimed at supporting RWA market expansion. The system delivers price data across multiple asset classes with less than one second of latency, with a focus on helping institutional investors value and manage assets. Wong said it is already being used by several DeFi protocols and derivatives markets.

The company also outlined a risk-management framework for RWAs. RedStone uses its own risk assessment system to rate the risk levels of assets and protocols. Institutional participation tends to increase when transparent risk information is available, Wong said.

RedStone plans to further develop the framework through real-time risk updates and links with lending and insurance protocols. A system that automatically adjusts lending terms based on risk levels will become one pillar of DeFi infrastructure, Wong said.

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