Ethena Labs and Securitize Launch Converge Blockchain for DeFi and Tokenized Assets

Ethena Labs and Securitize have announced the upcoming launch of Converge, a blockchain designed to enhance decentralized finance (DeFi) and tokenized assets. Converge is an Ethereum Virtual Machine (EVM)-compatible system that delivers optimized solutions for both retail customers and institutions. This new platform aims to provide retail users with access to standard DeFi applications, allowing them to participate in various financial services. Institutional investors will benefit from jointly developed applications and products with partners, granting them authorized access to DeFi solutions while improving capital utilization.

Ethena Labs plans to migrate its $6 billion worth of assets from its current DeFi ecosystem to Converge. This migration is intended to boost service efficiency and safety measures. The platform enables Securitize to tokenize current and upcoming real-world assets, improving interoperability and compliance features. Converge has attracted support from major organizations such as Pendle, Avara, Ethereal, Morpho, and Maple Finance, which will collaborate on application and product deployment on the platform. Users will gain access to various financial services through the expected network enrichment made possible by these collaborative efforts.

Converge achieves interoperability through its integration with LayerZero and Wormhole, along with other key platform features. These integrations create easy asset movement possibilities between various blockchain networks, enhancing the platform's functionality. The Ethena platform will secure its Converge network through the governance token ENA as its native implement. Network stakeholders can strengthen network security through ENA staking activities (sENA), even though maintenance tasks are handled by a restricted group of validators, which includes traditional financial entities and centralized exchanges.

The stablecoin products USDe and USDtb, created through collaboration between Ethena and Securitize, function as network gas tokens. The platform integration functions to optimize its transaction operations and elevate user experience across the system. Ethena Labs and Securitize intend to launch Converge during the second quarter of 2025. This combined experience of their organizations will establish both innovation and compliance in their DeFi ecosystem.

Ask Aime: What are the key benefits and challenges of Ethena Labs and Securitize's new blockchain technology, Converge, for retail and institutional investors?

Converge is designed to facilitate institutional capital flows and integrate tokenized assets, providing a robust platform for institutional investors to access the innovations and capital efficiency of DeFi in a compliant manner. Ethena Labs will focus its institutional products on Converge and seek to migrate its existing DeFi ecosystem, which currently holds nearly $6 billion in assets. This migration will enable institutional investors to leverage the full potential of DeFi while adhering to regulatory standards.

Securitize, known for its expertise in tokenizing real-world assets (RWA), will issue existing and future tokenized assets on Converge. The platform will continue to facilitate the interoperability of its numerous protocol integrations, ensuring a seamless experience for users. ENA, Ethena Labs' native governance token, will serve as a stakable asset on Converge, with USDe and USDtb acting as the network's gas tokens. This setup will enhance the utility and functionality of the blockchain, making it an attractive option for institutional investors.

The launch of Converge is expected in the second quarter of 2025, marking a significant milestone in the integration of traditional finance and DeFi. This new blockchain is poised to bridge the gap between these two worlds, offering a compliant and efficient platform for institutional capital flows. By providing a suite of applications and products tailored for institutional investors, Converge aims to democratize access to the innovations and capital efficiency of DeFi, fostering growth and development in the sector.