YZi Labs Participates in Digital Asset's $135 Million Funding Round

YZi Labs Participates in Digital Asset's Funding Round

The $135 million funding round, first announced on June 24, 2025 and joined by YZi Labs on July 3, was led by DRW Venture Capital and Tradeweb Markets. In addition to YZi Labs, major investors from both traditional and decentralized finance such as Goldman Sachs, Citadel Securities, DTCC, BNP Paribas, and Polychain Capital also participated.

The capital will be used to upgrade Canton Network infrastructure, accelerate RWA integration, and enhance interoperability between applications on the network. With over $10 billion in assets under management and a portfolio of over 300 projects, YZi Labs brings global experience and network to Digital Asset’s efforts to bring real-world assets to the blockchain.

The participation of YZi Labs and major financial institutions shows the increasingly clear trend of combining traditional finance (TradFi) and decentralized finance (DeFi) through RWA tokenization.

Canton Network, which features a unique Layer-1 offering configurable privacy, is becoming the preferred platform for integrating assets such as bonds, money market funds, and repurchase agreements (repos), with a TVL of trillions of dollars. This reflects a shift from speculative cryptocurrency projects to practical solutions where blockchain solves real-world financial market problems, especially in an increasingly regulated environment.

What challenges and risks may arise?

While promising, the Canton Network expansion plan faces several challenges. First, integrating RWAs with trillions of dollars in TVL requires robust technical infrastructure and complex regulatory compliance, especially in large markets like the US and EU. Second, the reliance on institutional partners could undermine decentralization, a core value of blockchain, causing controversy in the community. Finally, if competitors like Ethereum or Solana develop similar solutions, Canton could lose its edge if it fails to maintain the pace of innovation.

For investors, monitoring the progress of Canton Network over the next 12-18 months, including new RWA integrations, will be crucial to assessing the profit potential. They should consider the risk of token price volatility and portfolio diversification.

For Digital Asset and YZi Labs, transparency in TVL data and close cooperation with institutions to ensure regulatory compliance are essential. The company also needs to accelerate expansion into new markets to make the most of the $135 million in funding.

Evaluation and Conclusion

YZi Labs’ participation in Digital Asset’s $135 million funding round to expand Canton Network is a significant step forward, reflecting RWA’s convergence of traditional and decentralized finance through tokenization. With a potential TVL of trillions of dollars, Canton Network has the opportunity to become a mainstream platform for financial institutions, but success depends on overcoming technical and regulatory challenges.

In the context of the rapidly growing cryptocurrency industry, this event not only enhances the position of Digital Assets but also opens up the prospect of widespread institutional adoption, laying the foundation for a new financial ecosystem on the blockchain.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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