RedStone provides live LTV feeds for Spark’s BTC collateral at Anchorage
Oracle provider RedStone has gone live with real-time loan-to-value data feeds for Spark’s Bitcoin collateral positions held at Anchorage Digital. The integration means that institutional lenders parking BTC offchain can now have their collateral health tracked continuously onchain, solving one of DeFi’s biggest trust gaps with traditional finance.
Institutions have wanted exposure to DeFi yields for years, but most aren’t comfortable moving billions in Bitcoin onto a smart contract. This setup lets them keep their BTC in institutional custody at Anchorage while still tapping into Spark’s onchain lending markets. RedStone’s LTV feeds are the connective tissue that makes the whole arrangement work.
How the plumbing works
The partnership between Spark and Anchorage Digital officially launched on January 15, 2026. Under this structure, Anchorage serves as the collateral agent, managing LTV ratios and handling margin calls through its Atlas platform.
The initial activity under this arrangement was not small. Three institutional borrowers drew $150 million USDC against $222 million in BTC collateral. That puts the starting LTV at roughly 67.5%.
RedStone’s role is to continuously broadcast the current LTV of these positions so that both onchain participants and offchain custodians are working from the same data. Without reliable, real-time LTV data, there’s no way to programmatically trigger margin calls or liquidations when collateral values shift.
RedStone has been embedded in Spark’s infrastructure since February 2025, when it started providing BTC and ETH price feeds to SparkLend. The live LTV feeds represent a natural extension of that relationship, layering collateral health monitoring on top of the raw price data the oracle was already delivering.
Why institutions care about this
DeFi protocols have historically required users to deposit collateral directly into smart contracts. Institutions want the yields that DeFi offers but require the custody frameworks their compliance teams demand. Anchorage Digital holds a federal bank charter, making it a regulated custodian suitable for institutional requirements.
Spark’s model with Anchorage threads this needle. The BTC stays with the custodian. The lending happens onchain. And RedStone’s oracle feeds ensure that the two worlds stay synchronized.
Spark’s position in the broader ecosystem
SparkLend operates within the Sky ecosystem, the protocol formerly known as MakerDAO. Spark has been positioning itself as the institutional-grade frontend for Sky’s lending engine, with Anchorage serving as collateral agent and RedStone as the LTV oracle provider.
RedStone has also been running reward campaigns distributing RED tokens to SparkLend users. The oracle market itself is worth noting: RedStone won the Spark mandate for both price feeds starting February 2025 and now LTV monitoring, giving it a significant foothold in one of DeFi’s prominent lending protocols.
The risk is that the oracle becomes a single point of failure. If RedStone’s LTV feeds go stale or report inaccurate data during a volatile market event, the consequences could cascade from a missed margin call to an undercollateralized position to real losses for lenders. The institutions borrowing nine figures against their Bitcoin are betting that infrastructure holds.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
U.S. budget deficit soars to nearly $2 trillion, exceeding 6% of GDP; high interest rates and tax cuts further worsen the deficit
The US budget deficit for fiscal year 2026 has risen to $1.993 trillion, a year-on-year increase of 12%, marking the highest level since 2021 and projected to account for over 6% of GDP. High interest rates have pushed net interest payments to over $1.1 trillion, accounting for more than half of the deficit increase; lower-than-expected tax and tariff revenues have further worsened the financial shortfall. With just weeks left before the midterm elections, neither party intends to implement substantial fiscal consolidation, and the deficit outlook is highly dependent on the election results.
To deliver computing power, Oracle uses trucks to transport natural gas to power its data centers
To address pipeline delays in AI data center construction, Oracle has adopted an unconventional energy supply method by transporting compressed natural gas via trucks, which has already been implemented in Utah and Texas, and is also being considered for the "Project Jupiter" in New Mexico. However, this solution costs four times as much as pipeline natural gas and is limited in scale, covering only a small fraction of the project's total capacity.
Aptos insider vesting ends, cutting APT unlocks by 60%
US Treasury yields soar to a 24-year high; US Treasury advisors expect future declines as AI investments and energy shocks drive up borrowing costs
David Zervos, senior advisor to U.S. Treasury Secretary Yellen and a veteran Wall Street professional, stated on Thursday that despite the recent surge in U.S. Treasury yields to their highest levels in decades, the current real yields are significantly elevated compared to historical levels, suggesting room for a decline in the future.
Crypto prices
More
