RedStone has launched LTV, collateral, and loan feeds for Spark’s positions within Anchorage Digital, making institutional custodian data available onchain.
TL;DR:
- Spark Prime’s proprietary risk framework needs visibility across every venue a position touches, DeFi protocols, CEXs, and qualified custodians.
- RedStone has launched LTV, collateral, and loan feeds for Spark’s positions inside Anchorage Digital.
- The feeds currently track 4,722.61 BTC in collateral, worth roughly $315 million, against $250 million in active loans, an LTV of approximately 0.79.
- RedStone already provides Spark’s lending markets with price feeds and Credora risk ratings. The Anchorage Digital feeds add a third data source for institutional collateral.
Where Spark’s Institutional Collateral Lives
Spark is an onchain capital allocator, deploying liquidity drawn from Sky’s stablecoin reserves across DeFi, CeFi, and real-world assets (RWA). It is one of the largest DeFi protocols, running SparkLend as its lending market and the Spark Liquidity Layer (SLL) which supplies it with consistent liquidity.
SLL also deploys capital across protocols like Morpho, Aave, and Ethena, as well as tokenized Treasury products including BlackRock’s BUIDL fund. Across its products, Spark currently holds over $4.7 billion in total value locked (TVL).
Spark Prime launched in February 2026 alongside Spark Institutional Lending, two products aimed at moving Spark’s onchain liquidity into the institutional crypto lending market. Spark Prime makes capital-efficient, over-collateralized lending possible by allowing positions to be margined across DeFi protocols, CEXs, and qualified custodians within a governance-defined risk framework.
Anchorage Digital is one of those qualified custodians. It is a federally chartered crypto bank that gives institutions a regulated way to custody assets like Bitcoin while borrowing against them. Spark provides USDC and USDT liquidity to institutional clients who post BTC as collateral inside Anchorage Digital’s custody infrastructure.
Spark Prime and the Custody Problem
That custody model allows institutions to remain compliant by holding assets in a regulated environment rather than in a smart contract. It also means those positions are invisible to onchain risk systems by default.
Spark Prime’s risk framework depends on seeing a borrower’s full collateral position across every venue it touches, including DeFi protocols, CEXs, and qualified custodians. A position held at Anchorage Digital does not natively report into that view the way a DeFi position does, since the collateral sits off-chain under Anchorage’s own infrastructure rather than in a smart contract.
That risk framework only works if the data behind it is accurate and current, regardless of where the collateral sits. RedStone feeds fill that gap.
The Data Layer Underneath Spark Prime’s Risk Framework
RedStone now takes Spark’s position data directly from Anchorage Digital and republishes it as three types of live onchain feeds.
The Loan-to-Value (LTV) ratio is the single number that determines how close a position sits to a risk threshold.
Collateral is reported three ways: the raw BTC amount currently posted, that same amount converted to USD, and a total collateral value in USD that would account for other collateral assets if Spark ever adds them.
The loan balance is the other half of that ratio, the USD institutions have borrowed against their collateral.
As of this writing, the feeds track 4,722.61 BTC in collateral, worth roughly $315 million, against $250 million in active loans, an LTV of approximately 0.79. The feeds are live in production and already integrated by DefiLlama for analytics.
RedStone’s Oracle Stack at Work
Spark is one of RedStone’s largest integrations by TVL. RedStone supplies price feeds to SparkLend, while Credora, RedStone’s risk ratings arm, provides institutional-grade risk ratings for Spark’s lending markets.
The LTV feeds for Spark Prime extend that same infrastructure to a third category of data, collateral held outside the blockchain. As more institutional activity moves through qualified custodians rather than smart contracts, that kind of data needs the same reliability standard RedStone already applies to pricing and credit risk.
