Block Street Raises $11.5M to Build ‘Execution Layer for On-Chain Stocks’

2 weeks ago7 min read

In a move that signals the accelerating convergence of traditional finance and decentralized protocols, crypto infrastructure startup Block Street has secured a formidable $11. 5 million in a funding round led by Hack VC, with significant backing from Generative Venture, DWF Labs, and a cadre of executives from institutional powerhouses like Jane Street and Point72.This isn't just another capital infusion into the nebulous world of Web3; it’s a targeted bet on building the foundational plumbing required to bring the multi-trillion-dollar equity market on-chain, with a core thesis that trading tokenized stocks must finally feel as seamless, fast, and reliable as its TradFi counterpart. The company’s answer to this challenge is a sophisticated two-part stack built on the high-performance Monad blockchain.The first component, Aqua, operates as an execution layer utilizing a request-for-quote (RFQ) model, a familiar mechanism in traditional wholesale markets where designated market makers compete in real-time to provide the most competitive prices for large orders. The critical innovation here is that these quotes are cryptographically signed and immutably verified on-chain before execution, a process designed to eradicate the front-running and manipulative delays that have long plagued decentralized finance and constitute a significant barrier to institutional adoption.This directly tackles the notorious problem of Maximal Extractable Value (MEV), where sophisticated bots can exploit transaction ordering for profit, often at the expense of the retail trader; Block Street claims its system drastically reduces this 'MEV leakage,' effectively returning value to the end user. The second pillar of their architecture, Everst, introduces a suite of lending and liquidation tools engineered specifically for the unique risk profile of tokenized equities.This is a monumental leap beyond simple tokenization, which has often resulted in static, non-functional assets. Everst enables the full spectrum of sophisticated financial strategies—borrowing against equity holdings, establishing short positions, or constructing complex hedges—directly on-chain, transforming these digital representations from mere speculative instruments into dynamic, productive capital assets.As Hedy Wang, co-founder of Block Street, succinctly put it, 'Our mandate is infra, not just an app,' highlighting a strategic focus on building the underlying rails rather than a consumer-facing front end. She further elaborated on the technological bedrock, noting that 'Monad’s parallel EVM gives us the settlement guarantees and latency budget institutions expect, while Aqua and Everst push best-execution and equity-native risk controls directly on-chain.' This statement underscores a pivotal industry shift: the recognition that for TradFi to genuinely embrace DeFi, the infrastructure must not only match but exceed the performance and security standards of existing systems. The involvement of veterans from Citadel, Point72, and Google on Block Street’s team lends considerable credibility to this ambitious endeavor, suggesting a deep understanding of the nuanced requirements of high-frequency trading and risk management.Their planned transparency dashboards, which will publicly quantify the execution quality superiority over traditional automated market-makers (AMMs), could become a powerful tool for building trust and demonstrating tangible value in a space often criticized for its opacity. The roadmap, which envisions a live launch on Monad later this year with subsequent expansions to Ethereum, BNB Chain, and Base, reflects a pragmatic, multi-chain future where different ecosystems serve specialized purposes based on their throughput and security characteristics.This development must be viewed within the broader context of a rapidly maturing digital asset landscape, where recent milestones like the approval of Bitcoin ETFs have paved the way for more complex financial products. The recent $104 million raise by crypto infrastructure firm Zerohash, led by traditional finance giants Interactive Brokers and Morgan Stanley, is not a coincidence but part of the same macro-trend of established financial institutions strategically positioning themselves within the digital asset value chain.The ultimate success of Block Street’s Aqua and Everst will hinge on several factors: achieving true sub-second latency that can compete with centralized exchanges, navigating the complex and evolving global regulatory landscape for tokenized securities, and attracting sufficient liquidity from both crypto-native market makers and traditional institutions to ensure tight spreads and deep order books. If successful, however, the implications are profound.It could democratize access to sophisticated equity strategies currently reserved for hedge funds and professional traders, create a truly global, 24/7 trading venue for blue-chip stocks, and establish a new paradigm for financial infrastructure that is simultaneously transparent, efficient, and accessible. This isn't merely about putting stocks on a blockchain; it's about re-architecting the very mechanics of global equity markets for a new digital age.

#featured

#Block Street

#funding

#tokenized stocks

#execution layer

#Monad

#DeFi

#market makers

#Hack VC

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