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

1 month 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.

#featured

#Block Street

#funding

#tokenized stocks

#execution layer

#Monad

#DeFi

#market makers

#Hack VC