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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.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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