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- Ethena Labs and Securitize are launching Converge, a blockchain designed for DeFi and tokenized assets.
- Converge will cater to both retail and institutional investors with a compliant financial framework.
- The blockchain will integrate with major DeFi projects and institutional custodians for security and efficiency.
Ethena Labs and Securitize are introducing Converge, a new blockchain designed to enhance decentralized finance and tokenized assets. Built as an Ethereum Virtual Machine (EVM) blockchain, Converge will support Ethereum-based applications, ensuring seamless integration with existing DeFi ecosystems.
Both institutional and retail users will have access to the platform. Institutions will have access to a suite of customized financial products, and retail users will be able to access traditional DeFi applications. With both avenues being converged, it aims to connect blockchain-based solutions with traditional finances.
Securitize to Issue Tokenized Assets on Converge
Ethena will be transitioning its existing DeFi ecosystem, which is managing nearly $6 billion in assets, to Converge. The blockchain will provide institutions with secure and compliant access to DeFi opportunities, which will help drive further institutional adoption.
Securitize, which has already issued almost $2 billion of real-world assets (RWAs) on several blockchains, will be using Converge to issue future tokenized assets. Converge’s platform will integrate several large DeFi initiatives, including Pendle, Aave Labs’ Horizon initiative, Ethereal, Morpho, and Maple Finance.
Institutional-grade providers such as Anchorage, Copper, Fireblocks, Komainu, and Zodia will provide custodial backing. Such custodians will grant institutional investors secure storage.The blockchain will integrate interoperability protocols like LayerZero and Wormhole to enhance cross-chain connectivity. Redstone and Pyth will provide oracle services for stable on-chain data feeds.
ENA to Secure Converge with Permissioned Validator Set
For regulatory compliance, Converge will be taking a whitelist approach to institutional DeFi applications. It will remain accessible to all, providing permissioned and permissionless financial solutions. Ethena’s governance token, ENA, will secure the network.
A permissioned validator set, including central exchanges and traditional finance institutions, will validate the network. Ethena and Securitize’s stablecoin products, USDe and USDtb, will serve as gas tokens. Converge will launch in Q2 2025. It will be a large DeFi and tokenized asset blockchain platform with strong institutional support and a compliance-focused approach.
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