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By Shirley Li , Researcher at Web3Caff Research
Cover: Logo from this project, Typography by Web3Caff Research
Word count: about 3000+ words
According to official disclosure, on October 9, the tokenized stock infrastructure Block Street completed a strategic financing of US$11.5 million, led by Hack VC, with participation from Generative Venture, DWF Labs, StudioB, Bridge34, Jane Street, Point72 and HRT operations team.
The RWA (Real World Asset) tokenization sector is currently undergoing an unprecedented structural transformation. Initially, this sector exploded in the lending market, and subsequently, the relevant infrastructure and policy environment began to gradually improve, laying the foundation for RWA's rapid development. Today, RWA's application has long since shifted from "diversifying collateral assets" to "digitizing a wider range of real-world assets." These assets include financial assets, real estate, precious metals, commodities such as oil, film and television IP, and artwork. This means that RWA is no longer just a financial innovation; it has become a key gateway for promoting the integration of Web2 world assets into the Web3 financial system.
The author specifically reminds you that the following content is merely an objective analysis of Block Street's product features and development patterns and does not constitute any proposal or offer. Please be aware that issuing and participating in token investments are subject to regulatory requirements and restrictions of varying degrees of strictness in different countries and regions. In particular, issuing tokens in mainland China is suspected of "illegal issuance of securities," and providing token trading matchmaking and other cryptocurrency trading-related activities also constitute "illegal financial activities" (readers in mainland China are strongly advised to read the " Compilation and Key Summary of Mainland China's Laws and Regulations Related to Blockchain and Virtual Currency "). Therefore, please do not make any decisions based on this information, and please strictly abide by the laws and regulations of your country and region and refrain from engaging in any illegal financial activities.
This is because on-chain products can overcome the time, geographical, and settlement speed limitations of traditional financial markets, further accelerating the circulation of assets. However, with the proliferation of RWA products, some issues have also begun to surface. For example, different issuers may tokenize the same type of asset (e.g., Apple stock), but the tokens they generate are actually different, with different naming schemes, smart contract addresses, and technical standards. In other words, although different issuers have issued tokens representing Apple stock, their versions differ. This means that the overall liquidity of Apple stock tokens in the market is fragmented and dispersed across different token versions. Furthermore, because different issuers have slight differences in pricing models and actual trading depth, some MEV (maximum extractable value) hunters exploit these differences to conduct arbitrage operations across different market versions.
To this end, Block Street, which announced its funding round this week, is working to build infrastructure for tokenized assets (particularly stocks), enabling it to serve as the middle layer connecting TradFi and DeFi. According to its official vision, Block Street aims to unify diverse institutions, issuers, users, and protocols into a single ecosystem, enabling any user to access and use traditional financial assets at any time and from any location.
