oTFY is live on Morpho: the Money Behind Global Trade Is Becoming Collateral

Obligate’s oTFY trade finance yield product is now live as collateral on Morpho, with price fees provided by RedStone and risk parameters set by RockawayX.

What oTFY Actually Does

When goods move between countries, somebody has to pay for them while they are in transit. That gap is trade finance, a market measured in trillions of dollars a year that almost no investor outside a handful of institutions can access.

TradeFlow funds these shipments by taking legal title to the goods rather than lending against a company’s credit. Through the Obligate platform, that activity becomes a security issued under Swiss law across several blockchains. Holding oTFY gives investors exposure to the financing of real cargo, with weekly liquidity.

Investors can now also tap the liquidity pools on Morpho. By posting oTFY as collateral, they can borrow stablecoins against it on Morpho’s lending markets while keeping their exposure to the real-world economic activity behind global supply chains.

Payments Moved First. Financing Is Following.

Trade finance was one of the earliest parts of the real economy to adopt blockchain, through stablecoins used to settle cross-border payments. Moving the money was the easy part. Funding the goods stayed offchain.

Putting oTFY on Morpho connects the two. Someone earning yield on real-world assets in an onchain lending market is, in effect, helping fund a container of copper crossing the ocean.

Matthias Wyss, CEO of Obligate, put it this way: “Global trade runs on credit, and almost all of that credit sits inside a handful of banks where no outside investor can access it. We have first turned that financing into something an investor can access, and now into something they can borrow against. An investor earning yield onchain and a shipment of metal crossing the ocean are now a lot closer together than most people would have ever imagined.”

Enabling this is RedStone’s price data. DeFi lending needs the asset reliably priced so that permissionless liquidations can proceed in due order if the price moves. Assets without a price feeds usually aren’t considered by most risk curators and protocols. 

Attracting Significant Capital

Since launching in July 2026, oTFY has reached approximately $26 million outstanding on Solana and now extends to Ethereum. Over the same period, the underlying trade finance bonds have grown from roughly $40 million to $170 million.

TradeFlow Capital Management, whose model underlies the product, framed the collateral use this way: “This is an important development in connecting institutional-grade trade finance with onchain capital markets. The TradeFlow investment model is based on our funds purchasing and taking legal title to physical commodities within carefully structured import and export transactions. By making oTFY usable as collateral on Morpho, investors can access additional liquidity and capital efficiency while retaining exposure to the real-world economic activity that supports global trade.”

Sophisticated Interplay

RockawayX, a digital asset investment firm with over $2 billion in collective assets under management, sets and monitors the risk parameters of the market on an ongoing basis. RedStone supplies the pricing data that lets the market determine the value oTFY reliably, without which a real-world asset cannot function as collateral.

Matt Gurbiel, VP of Business Development at RedStone, explained the dependency: “A real-world asset only works as collateral if the market can see what it is worth at any moment. Bringing oTFY’s valuation onchain is what turns it from a token you can only hold into something you can actually lend against.

Frequently Asked Questions

What is oTFY?

oTFY is Obligate’s trade finance yield product: a Swiss-law security, issued acros several blockchains, that gives investors exposure to the financing of real commodity shipments managed by TradeFlow. Holders get weekly liquidity, subject to the terms and conditions in the product documentation, and can now also use oTFY as collateral on Morpho.

Who is Obligate?

Obligate is a Swiss capital markets infrastructure provider that issues debt and structured instruments as ledger-based securities under Swiss law, combining onchain transferability with legal enforceability for qualified investors.

How does oTFY work as collateral on Morpho?

Investors holding oTFY can post it as collateral in a Morpho lending market and borrow stablecoins against it, without giving up their underlying exposure to the trade finance bonds backing the product. RockawayX sets the market’s risk parameters, and RedStone’s pricing data lets the market determine the value of the collateral in real time.

What is RedStone’s role in the oTFY integration?

RedStone supplies the pricing data that values oTFY onchain. Without a reliable, continuously updated price, a real-world asset like oTFY cannot safely function as loan collateral, since the market would have no way to track its value or trigger liquidations correctly.

Who manages the risk parameters for the oTFY market on Morpho?

RockawayX, a digital asset investment firm with over $2 billion in collective assets under management, sets and monitors the market’s risk parameters on an ongoing basis, applying the same institutional-grade credit underwriting it uses across its other onchain lending strategies.

About RedStone

RedStone is the data layer for institutional DeFi, delivering secure, low-latency price feeds for digital assets, RWAs, stablecoins, LSTs, LRTs, and Bitcoin LSTs across 110+ chains. Trusted by 200+ clients, including Securitize, Morpho, Pendle, Spark, Ether.fi, Ethena, Lombard, Venus, and Compound, RedStone powers lending, stablecoins, perpetuals, and tokenized asset markets with custom pricing infrastructure built for complex onchain systems. RedStone provides data for tokenized products including BlackRock’s BUIDL, Apollo ACRED, and Hamilton Lane SCOPE. Zero mispricing events. 100% uptime. Learn more at redstone.finance.

About Obligate

Obligate AG is a Swiss-based provider of blockchain-based capital markets infrastructure. It operates a platform that supports the issuance, subscription, settlement and lifecycle management of debt and structured instruments natively on public blockchains, connecting issuers seeking financing with professional investors. Debt instruments are issued as ledger-based securities under Swiss law, combining on-chain transferability with legal enforceability and the operational controls institutional participants expect. Obligate AG is a financial intermediary within the meaning of the Swiss Anti-Money Laundering Act (AMLA) and a member of the Financial Services Standards Association (VQF), a self-regulatory organization recognized and supervised by the Swiss Financial Market Supervisory Authority (FINMA).

About TradeFlow

TradeFlow Capital Management is a pioneer in transforming physical global trade into an institutional-grade, digitally investable real-world asset class. Since 2018, TradeFlow has completed more than 5,000 physical commodity transactions representing over US$5 billion in cumulative turnover. Its asset-backed, non-credit model is based on purchasing and taking legal title to commodities moving through global supply chains. TradeFlow has pioneered investment-grade rated trade finance securities and is at the forefront of bringing institutional-grade trade finance into digital capital markets through tokenisation, blockchain-based securities and stablecoin infrastructure.

About RockawayX

RockawayX is a leading digital asset investment firm operating across venture, liquidity, curation, and infrastructure, with over $2 billion in collective assets under management. Through its evolved approach to onchain yield, the firm applies institutional-grade credit underwriting to construct, monitor, and manage diversified exposure across stablecoin and real-world asset strategies. This framework is supported by advanced allocation models, automated risk controls, and real-time opportunity detection, enabling the firm to maintain a zero-default record across CeFi and DeFi lending since inception.

About Morpho

Morpho is an open credit network with $14B+ in deposits connecting lenders and borrowers to the optimal opportunities worldwide. Its modular, open infrastructure enables fintechs, wallets, exchanges, and institutions to embed configurable credit products directly into their platforms, while maintaining full control over the user experience. Leaders like Coinbase, Bitwise Asset Management, and Société Générale already build on Morpho to deploy secure, scalable onchain credit products. For more information, please visit morpho.org.

Important Notice and Disclaimer: This article is provided solely for informational purposes and does not constitute financial advice, an offer to buy or sell, or a solicitation of an offer to buy or sell any digital assets. Trading digital assets and interacting with blockchain, DeFi protocols and smart contracts involve a high degree of risk; you may lose your entire investment. Users should conduct their own due diligence and consult with a professional advisor before participating.