Aniket Pujari
Ethena Labs and Securitize have announced the launch of Converge, a blockchain designed to support decentralized finance and tokenized assets.
The network will cater to both retail and institutional investors, offering standard DeFi applications alongside financial products that comply with institutional requirements.
Converge is built on Ethereum’s Virtual Machine, allowing existing Ethereum (ETH)-based applications and smart contracts to function without modification. Ethena (ENA) plans to move its DeFi ecosystem, which holds nearly $6 billion in assets, onto Converge.
Securitize, which specializes in tokenizing real-world assets, will use the blockchain to issue and manage digital securities.
Tokenized assets are digital representations of financial instruments like stocks, bonds, and real estate.
Converge will allow institutions to interact with these assets on-chain while maintaining regulatory compliance. Institutional-grade custodians, including Anchorage, Copper, and Fireblocks, will provide security for these assets.
DeFi applications
The network will integrate DeFi applications from partners such as Pendle, Aave Labs, and Maple Finance. It will also support interoperability through LayerZero and Wormhole, ensuring seamless asset transfers across blockchains. Oracle providers like RedStone and Pyth will supply real-time price data.
Ethena’s ENA token will play a role in securing the network, and the stablecoins USDe (USDe) and USDtb will be used for transaction fees. The blockchain will include both permissionless DeFi applications and permissioned offerings for institutional users.
Ethena and Securitize see Converge as a solution to regulatory barriers that have kept institutions from fully engaging with DeFi. By combining DeFi’s efficiency with compliance-focused infrastructure, the network aims to provide a bridge between traditional finance and blockchain-based markets.
