Multiliquid and Metalayer Ventures launched Solana-built backstops for institutional redemptions in RWAs. The facility allows holders of tokenized assets to instantly convert positions to stablecoins, addressing a long-standing liquidity friction that has limited institutional participation in on-chain RWAs.
The move combines Multiliquid’s smart contract infrastructure, developed by Uniform Labs, with capital provision from Metalayer to create a permanent buyer that acquires RWA at a discount to the net asset value (NAV). This structure is designed to operate 24/7 and support institutional settlement and compliance enforcement for issuers and counterparties.
Metalayer Ventures will raise and manage the liquidity vehicle that serves as the facility’s capital source. Multiliquid contributes pricing mechanisms, swap execution, compliance hooks, and integrations that enable instant settlement on Solana. The vehicle purchases assets at a discount to NAV and compensates liquidity providers for providing immediate access to capital.
Andy Kangpan of Metalayer Ventures said, “The network is designed to give institutions the liquidity certainty they need to participate in tokenized markets, meaning instant redemptions, no waiting periods, and no counterparty uncertainty.”
What will its market share look like?
An important point to note is that everything will be based on the Solana network, which ranks eighth in RWA value, reaching a valuation of $1.2 billion with 343 assets. Furthermore, it has seen approximately a 10% increase in value month-over-month.
This solution comes amid a series of questions regarding the liquidation possibilities of tokenized market funds and how they might face sudden drops in value. The new facility directly addresses this structural risk by providing immediate exit capacity, reducing the potential for redemption stress in tokenized cash-type products, according to the announcement.
Nick Ducoff, head of institutional growth at the Solana Foundation, said that the initiative “supports dedicated redemption capacity that benefits the entire tokenized asset ecosystem, helping to establish Solana as a premier destination for the issuance, trading, and redemption of tokenized assets.”
By establishing a permanent buyer and an on-chain execution layer, Multiliquid and Metalayer have created a mechanism aimed at closing the liquidity gap that has inhibited broader institutional allocation to RWAs.
Market participants should watch how quickly issuers and DeFi protocols adopt the facility and whether its discount model maintains sufficient capacity during periods of high redemption volume; the announcement confirmed that the facility launched on February 5.
