Security is one of the largest token asset issuers, and Oracle provider Redstone released a white paper that they said a new model for safe verification of net asset value (NAV) Data on the chain, specifically targeting tokenized private funds.
This model is called the trusted single source Oracle (TSSO)aims to address key gaps in diversified financing (defi) Infrastructure: How to reliably prove that every NAV’s update does come from a trusted source and that once the chain is not tampered with.
In the traditional crypto market, Oracles extracts data from multiple price feeds to prevent manipulation or errors. But for private funds, navigation is calculated by a single fund administrator. This brings up a unique problem: the number cannot be carefully examined through market summary. For DEFI protocols that rely on accurate accompanying values, this single point of trust has always been an incredible point.
The white paper says that the TSSO framework solves this problem by creating a NAV update chain with password links. Each update includes a secure digital signature, a timestamp, a reference to a previous record, and a hash that locks the sequences together. The system uses two keys: a cold storage “root key” for major updates, and a “chain key” for small regular changes that keep tight thresholds. The design is designed to balance high security with the actual need to refresh NAV data without continuous manual work.
“We need to make sure we can fully verify the information, we can check that no one compromises with the data, and we can only rely on one source. That’s why it needs to take the whole process to the next level – so that’s the reason for the challenge.”
According to Wojciechowski, Securitize is leading the development of the product, “Building is a bit like an internal blockchain, which is a chain with price updates,” he said. “We know they won’t miss any single price update because the next price update is the password related to the previous one.” After that, “Once everything is signed correctly, we collect the ability to verify that the data is truly from the source.”
Tokenized funds are widely regarded as one of the next big growth areas of blockchain. But their success depends on bridging the trust gap between traditional finance and crypto infrastructure.
Although still early, this effort highlights an increasing driving force for Defi to build institutional-level infrastructure. If widely adopted, models like TSSO can make tokenized funds easier to integrate with on-chain tools.
Securities said it has already driven TSSO with some customers and hopes to make significant progress and gain wider availability as soon as possible.
“It’s open to the industry, but it’s very natural for the assets we’re dealing with,” said Jorge Serna, chief product and technology officer at Securitize. “We’ve been issuing treasury funds and credit funds, whether we’re transfer agents or fund administrators or performing both functions, and for those who publish price feeds especially through Redstone. So that’s definitely something we want to ensure between securitization and redstone.”
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