diff --git a/Cargo.lock b/Cargo.lock
index 844b7645..604ad55f 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3207,6 +3207,7 @@ name = "indexer_core"
 version = "0.1.0"
 dependencies = [
  "anyhow",
+ "async-stream",
  "bedrock_client",
  "borsh",
  "common",
@@ -3227,11 +3228,13 @@ dependencies = [
  "async-trait",
  "clap 4.5.53",
  "env_logger",
+ "futures",
  "indexer_core",
  "indexer_service_protocol",
  "indexer_service_rpc",
  "jsonrpsee",
  "log",
+ "serde",
  "serde_json",
  "tokio",
  "tokio-util",
diff --git a/Cargo.toml b/Cargo.toml
index 2e5602f6..cc078836 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -93,6 +93,7 @@ itertools = "0.14.0"
 url = { version = "2.5.4", features = ["serde"] }
 tokio-retry = "0.3.0"
 schemars = "1.2.0"
+async-stream = "0.3.6"
 
 logos-blockchain-common-http-client = { git = "https://github.com/logos-blockchain/logos-blockchain.git" }
 logos-blockchain-key-management-system-service = { git = "https://github.com/logos-blockchain/logos-blockchain.git" }
diff --git a/indexer/core/Cargo.toml b/indexer/core/Cargo.toml
index 922f566c..8e503410 100644
--- a/indexer/core/Cargo.toml
+++ b/indexer/core/Cargo.toml
@@ -16,3 +16,4 @@ futures.workspace = true
 url.workspace = true
 logos-blockchain-core.workspace = true
 serde_json.workspace = true
+async-stream.workspace = true
diff --git a/indexer/core/src/lib.rs b/indexer/core/src/lib.rs
index 3508a257..c794b713 100644
--- a/indexer/core/src/lib.rs
+++ b/indexer/core/src/lib.rs
@@ -2,7 +2,7 @@ use std::sync::Arc;
 
 use anyhow::Result;
 use bedrock_client::BedrockClient;
-use common::block::HashableBlockData;
+use common::block::{Block, };
 use futures::StreamExt;
 use log::info;
 use logos_blockchain_core::mantle::{
@@ -16,6 +16,7 @@ use crate::{config::IndexerConfig, state::IndexerState};
 pub mod config;
 pub mod state;
 
+#[derive(Clone)]
 pub struct IndexerCore {
     bedrock_client: BedrockClient,
     config: IndexerConfig,
@@ -37,55 +38,52 @@ impl IndexerCore {
         })
     }
 
-    pub async fn subscribe_parse_block_stream(&self) -> Result<()> {
-        loop {
-            let mut stream_pinned = Box::pin(self.bedrock_client.get_lib_stream().await?);
+    pub async fn subscribe_parse_block_stream(
+        &self,
+    ) -> impl futures::Stream<Item = Result<Block>> {
+        async_stream::stream! {
+            loop {
+                let mut stream_pinned = Box::pin(self.bedrock_client.get_lib_stream().await?);
 
-            info!("Block stream joined");
+                info!("Block stream joined");
 
-            while let Some(block_info) = stream_pinned.next().await {
-                let header_id = block_info.header_id;
+                while let Some(block_info) = stream_pinned.next().await {
+                    let header_id = block_info.header_id;
 
-                info!("Observed L1 block at height {}", block_info.height);
+                    info!("Observed L1 block at height {}", block_info.height);
 
-                if let Some(l1_block) = self
-                    .bedrock_client
-                    .get_block_by_id(header_id, &self.config.backoff)
-                    .await?
-                {
-                    info!("Extracted L1 block at height {}", block_info.height);
+                    if let Some(l1_block) = self
+                        .bedrock_client
+                        .get_block_by_id(header_id, &self.config.backoff)
+                        .await?
+                    {
+                        info!("Extracted L1 block at height {}", block_info.height);
 
-                    let l2_blocks_parsed = parse_blocks(
-                        l1_block.into_transactions().into_iter(),
-                        &self.config.channel_id,
-                    );
+                        let l2_blocks_parsed = parse_blocks(
+                            l1_block.into_transactions().into_iter(),
+                            &self.config.channel_id,
+                        );
 
-                    for l2_block in l2_blocks_parsed {
-                        // State modification, will be updated in future
-                        {
-                            let mut guard = self.state.latest_seen_block.write().await;
-                            if l2_block.block_id > *guard {
-                                *guard = l2_block.block_id;
+                        for l2_block in l2_blocks_parsed {
+                            // State modification, will be updated in future
+                            {
+                                let mut guard = self.state.latest_seen_block.write().await;
+                                if l2_block.header.block_id > *guard {
+                                    *guard = l2_block.header.block_id;
+                                }
                             }
+
+                            yield Ok(l2_block);
                         }
-
-                        // // Sending data into sequencer, may need to be expanded.
-                        // let message = Message::L2BlockFinalized {
-                        //     l2_block_height: l2_block.block_id,
-                        // };
-
-                        // let status = self.send_message_to_sequencer(message.clone()).await?;
-
-                        // info!("Sent message {message:#?} to sequencer; status {status:#?}");
                     }
                 }
-            }
 
-            // Refetch stream after delay
-            tokio::time::sleep(std::time::Duration::from_millis(
-                self.config.resubscribe_interval_millis,
-            ))
-            .await;
+                // Refetch stream after delay
+                tokio::time::sleep(std::time::Duration::from_millis(
+                    self.config.resubscribe_interval_millis,
+                ))
+                    .await;
+                }
         }
     }
 }
@@ -93,7 +91,7 @@ impl IndexerCore {
 fn parse_blocks(
     block_txs: impl Iterator<Item = SignedMantleTx>,
     decoded_channel_id: &ChannelId,
-) -> impl Iterator<Item = HashableBlockData> {
+) -> impl Iterator<Item = Block> {
     block_txs.flat_map(|tx| {
         tx.mantle_tx.ops.into_iter().filter_map(|op| match op {
             Op::ChannelInscribe(InscriptionOp {
@@ -101,7 +99,7 @@ fn parse_blocks(
                 inscription,
                 ..
             }) if channel_id == *decoded_channel_id => {
-                borsh::from_slice::<HashableBlockData>(&inscription).ok()
+                borsh::from_slice::<Block>(&inscription).ok()
             }
             _ => None,
         })
diff --git a/indexer/service/Cargo.toml b/indexer/service/Cargo.toml
index 82639982..f41a9afd 100644
--- a/indexer/service/Cargo.toml
+++ b/indexer/service/Cargo.toml
@@ -4,7 +4,7 @@ version = "0.1.0"
 edition = "2024"
 
 [dependencies]
-indexer_service_protocol.workspace = true
+indexer_service_protocol = { workspace = true, features = ["convert"] }
 indexer_service_rpc = { workspace = true, features = ["server"] }
 indexer_core.workspace = true
 
@@ -15,7 +15,9 @@ tokio-util.workspace = true
 env_logger.workspace = true
 log.workspace = true
 jsonrpsee.workspace = true
+serde.workspace = true
 serde_json.workspace = true
+futures.workspace = true
 async-trait = "0.1.89"
 
 [features]
diff --git a/indexer/service/rpc/src/lib.rs b/indexer/service/rpc/src/lib.rs
index 820fd9a8..18755df5 100644
--- a/indexer/service/rpc/src/lib.rs
+++ b/indexer/service/rpc/src/lib.rs
@@ -24,7 +24,7 @@ pub trait Rpc {
     }
 
     #[subscription(name = "subscribeToFinalizedBlocks", item = Block)]
-    async fn subscribe_to_finalized_blocks(&self, from: BlockId) -> SubscriptionResult;
+    async fn subscribe_to_finalized_blocks(&self) -> SubscriptionResult;
 
     #[method(name = "getBlockById")]
     async fn get_block_by_id(&self, block_id: BlockId) -> Result<Block, ErrorObjectOwned>;
diff --git a/indexer/service/src/lib.rs b/indexer/service/src/lib.rs
index ccabe1ae..0c18410e 100644
--- a/indexer/service/src/lib.rs
+++ b/indexer/service/src/lib.rs
@@ -1,4 +1,3 @@
-#[cfg(not(feature = "mock-responses"))]
 pub mod service;
 
 #[cfg(feature = "mock-responses")]
diff --git a/indexer/service/src/mock_service.rs b/indexer/service/src/mock_service.rs
index 2ce801ce..e7afda18 100644
--- a/indexer/service/src/mock_service.rs
+++ b/indexer/service/src/mock_service.rs
@@ -166,10 +166,13 @@ impl indexer_service_rpc::RpcServer for MockIndexerService {
     async fn subscribe_to_finalized_blocks(
         &self,
         subscription_sink: jsonrpsee::PendingSubscriptionSink,
-        from: BlockId,
     ) -> SubscriptionResult {
         let sink = subscription_sink.accept().await?;
-        for block in self.blocks.iter().filter(|b| b.header.block_id >= from) {
+        for block in self
+            .blocks
+            .iter()
+            .filter(|b| b.bedrock_status == BedrockStatus::Finalized)
+        {
             let json = serde_json::value::to_raw_value(block).unwrap();
             sink.send(json).await?;
         }
diff --git a/indexer/service/src/service.rs b/indexer/service/src/service.rs
index 224ad38f..c7cdccd4 100644
--- a/indexer/service/src/service.rs
+++ b/indexer/service/src/service.rs
@@ -1,16 +1,36 @@
-use anyhow::Result;
+use std::{pin::pin, sync::Arc};
+
+use anyhow::{Context as _, Result, anyhow};
+use futures::StreamExt as _;
 use indexer_core::{IndexerCore, config::IndexerConfig};
 use indexer_service_protocol::{Account, AccountId, Block, BlockId, Hash, Transaction};
-use jsonrpsee::{core::SubscriptionResult, types::ErrorObjectOwned};
+use jsonrpsee::{SubscriptionSink, core::{Serialize, SubscriptionResult}, types::ErrorObjectOwned};
+use tokio::sync::Mutex;
 
 pub struct IndexerService {
-    indexer: IndexerCore,
+    service_impl: Arc<Mutex<IndexerServiceImpl>>,
+    respond_subscribers_loop_handle: tokio::task::JoinHandle<Result<()>>,
+}
+
+impl Drop for IndexerService {
+    fn drop(&mut self) {
+        self.respond_subscribers_loop_handle.abort();
+    }
 }
 
 impl IndexerService {
     pub fn new(config: IndexerConfig) -> Result<Self> {
+        let service_impl = Arc::new(Mutex::new(IndexerServiceImpl::new(
+            IndexerCore::new(config)?,
+        )));
+
+        let respond_subscribers_loop_handle = tokio::spawn(
+            IndexerServiceImpl::respond_subscribers_loop(Arc::clone(&service_impl)),
+        );
+
         Ok(Self {
-            indexer: IndexerCore::new(config)?,
+            service_impl,
+            respond_subscribers_loop_handle,
         })
     }
 }
@@ -19,10 +39,11 @@ impl IndexerService {
 impl indexer_service_rpc::RpcServer for IndexerService {
     async fn subscribe_to_finalized_blocks(
         &self,
-        _subscription_sink: jsonrpsee::PendingSubscriptionSink,
-        _from: BlockId,
+        subscription_sink: jsonrpsee::PendingSubscriptionSink,
     ) -> SubscriptionResult {
-        todo!()
+        let sink = subscription_sink.accept().await?;
+        self.service_impl.lock().await.add_subscription(Subscription::new(sink)).await;
+        Ok(())
     }
 
     async fn get_block_by_id(&self, _block_id: BlockId) -> Result<Block, ErrorObjectOwned> {
@@ -54,3 +75,63 @@ impl indexer_service_rpc::RpcServer for IndexerService {
         todo!()
     }
 }
+
+struct IndexerServiceImpl {
+    indexer: IndexerCore,
+    subscriptions: Vec<Subscription<Block>>,
+}
+
+impl IndexerServiceImpl {
+    fn new(indexer: IndexerCore) -> Self {
+        Self {
+            indexer,
+            subscriptions: Vec::new(),
+        }
+    }
+
+    async fn add_subscription(&mut self, subscription: Subscription<Block>) {
+        self.subscriptions.push(subscription);
+    }
+
+    async fn respond_subscribers_loop(service_impl: Arc<Mutex<IndexerServiceImpl>>) -> Result<()> {
+        let indexer_clone = service_impl.lock().await.indexer.clone();
+
+        let mut block_stream = pin!(indexer_clone.subscribe_parse_block_stream().await);
+        while let Some(block) = block_stream.next().await {
+            let block= block.context("Failed to get L2 block data")?;
+            let block = block.try_into().context("Failed to convert L2 Block into protocol Block")?;
+
+            // Cloning subscriptions to avoid holding the lock while sending
+            let subscriptions = service_impl.lock().await.subscriptions.clone();
+            for sink in subscriptions {
+                sink.send(&block).await?;
+            }
+        }
+
+        Err(anyhow!("Block stream ended unexpectedly"))
+    }
+}
+
+#[derive(Clone)]
+struct Subscription<T> {
+    sink: SubscriptionSink,
+    _marker: std::marker::PhantomData<T>,
+}
+
+impl<T> Subscription<T> {
+    fn new(sink: SubscriptionSink) -> Self {
+        Self {
+            sink,
+            _marker: std::marker::PhantomData,
+        }
+    }
+
+    async fn send(&self, item: &T) -> Result<()>
+    where T: Serialize
+    {
+        let json = serde_json::value::to_raw_value(item)
+            .context("Failed to serialize item for subscription")?;
+        self.sink.send(json).await?;
+        Ok(())
+    }
+}
diff --git a/integration_tests/src/lib.rs b/integration_tests/src/lib.rs
index 0fa39129..baff7c9c 100644
--- a/integration_tests/src/lib.rs
+++ b/integration_tests/src/lib.rs
@@ -116,20 +116,21 @@ impl TestContext {
         .context("Failed to create sequencer client")?;
 
         if let Some(indexer_config) = indexer_config {
-            let indexer_core = IndexerCore::new(indexer_config)?;
+            // let indexer_core = IndexerCore::new(indexer_config)?;
 
-            let indexer_loop_handle = Some(tokio::spawn(async move {
-                indexer_core.subscribe_parse_block_stream().await
-            }));
+            // let indexer_loop_handle = Some(tokio::spawn(async move {
+            //     indexer_core.subscribe_parse_block_stream().await
+            // }));
 
-            Ok(Self {
-                _sequencer_handle,
-                indexer_loop_handle,
-                sequencer_client,
-                wallet,
-                _temp_sequencer_dir: temp_sequencer_dir,
-                _temp_wallet_dir: temp_wallet_dir,
-            })
+            // Ok(Self {
+            //     _sequencer_handle,
+            //     indexer_loop_handle,
+            //     sequencer_client,
+            //     wallet,
+            //     _temp_sequencer_dir: temp_sequencer_dir,
+            //     _temp_wallet_dir: temp_wallet_dir,
+            // })
+            todo!()
         } else {
             Ok(Self {
                 _sequencer_handle,
diff --git a/sequencer_core/src/lib.rs b/sequencer_core/src/lib.rs
index f1b9dc80..4af124e4 100644
--- a/sequencer_core/src/lib.rs
+++ b/sequencer_core/src/lib.rs
@@ -260,14 +260,6 @@ impl SequencerCore {
         }
     }
 
-    pub fn first_pending_block_id(&self) -> Result<Option<u64>> {
-        Ok(self
-            .get_pending_blocks()?
-            .iter()
-            .map(|block| block.header.block_id)
-            .min())
-    }
-
     /// Returns the list of stored pending blocks.
     pub fn get_pending_blocks(&self) -> Result<Vec<Block>> {
         Ok(self
diff --git a/sequencer_runner/src/lib.rs b/sequencer_runner/src/lib.rs
index ef381da1..d62d0ca3 100644
--- a/sequencer_runner/src/lib.rs
+++ b/sequencer_runner/src/lib.rs
@@ -188,22 +188,11 @@ async fn listen_for_bedrock_blocks_loop(seq_core: Arc<Mutex<SequencerCore>>) ->
     let indexer_client = seq_core.lock().await.indexer_client().clone();
 
     loop {
-        let first_pending_block_id = {
-            let sequencer_core = seq_core.lock().await;
-
-            sequencer_core
-                .first_pending_block_id()
-                .context("Failed to get first pending block ID")?
-                .unwrap_or(sequencer_core.chain_height())
-        };
-
-        info!("Subscribing to blocks from ID {first_pending_block_id}");
+        // TODO: Subscribe from the first pending block ID?
         let mut subscription = indexer_client
-            .subscribe_to_finalized_blocks(first_pending_block_id)
+            .subscribe_to_finalized_blocks()
             .await
-            .with_context(|| {
-                format!("Failed to subscribe to blocks from {first_pending_block_id}")
-            })?;
+            .context("Failed to subscribe to finalized blocks")?;
 
         while let Some(block) = subscription.next().await {
             let block = block.context("Failed to get next block from subscription")?;
diff --git a/wallet/Cargo.toml b/wallet/Cargo.toml
index 292cebac..45b0788c 100644
--- a/wallet/Cargo.toml
+++ b/wallet/Cargo.toml
@@ -26,7 +26,7 @@ itertools.workspace = true
 sha2.workspace = true
 futures.workspace = true
 risc0-zkvm.workspace = true
-async-stream = "0.3.6"
+async-stream.workspace = true
 indicatif = { version = "0.18.3", features = ["improved_unicode"] }
 optfield = "0.4.0"
 url.workspace = true