Securitize and Ethena Launch Converge, Bridging DeFi and Traditional Finance

Securitize, a leading tokenization platform, has joined forces with Ethena to introduce an institutional-grade decentralized finance (DeFi) blockchain. This partnership is designed to bridge the gap between traditional finance and the rapidly growing DeFi sector, providing a secure and compliant environment for institutional investors.

The new blockchain platform, named Converge, will be Ethereum-compatible, allowing it to run Ethereum-based smart contracts, decentralized applications (dApps), and tools without any modifications. This compatibility ensures that the platform can seamlessly integrate with existing Ethereum infrastructure, making it easier for developers and users to transition to the new system.

Ethena will migrate its $6 billion DeFi ecosystem to Converge, bringing with it an interest-bearing token called USDe and a USDtb stablecoin supported by BUIDL. Securitize, acting as the transfer agent for BlackRock's BUIDL Fund, will introduce a series of tokenized real-world assets (RWA) to the new chain, including the recently issued apollo Credit Fund token. This collaboration aims to provide institutional investors with access to a wide range of tokenized assets, enhancing their investment opportunities in the DeFi space.

The partnership has attracted a strong set of initial partners, including Pendle, avara (parent company of Aave Labs), Ethereal, Morpho, and Maple Finance. These partners will contribute to the development and growth of the Converge ecosystem, offering a variety of DeFi services such as lending, borrowing, and trading. Custody services will be provided by Copper, Fireblocks, Komainu, and Zodia, ensuring the security of assets on the platform. Interoperability will be achieved through the support of LayerZero, Wormhole, and RedStone's oracles, enabling seamless communication and data exchange between different blockchain networks.

Converge will be secured through a permissioned validator set composed of traditional financial entities and centralized exchanges. Ethena's native governance token, ENA, will serve as a stakable asset on Converge (through sENA), providing an additional layer of security and governance to the network. USDe and USDtb will both serve as the network's gas tokens, facilitating transactions and smart contract executions on the platform.

Ask Aime: What impact will the partnership between Securitize and Ethena have on the DeFi ecosystem and institutional investors?

This collaboration represents a significant step forward in the adoption of DeFi by institutional investors, who have traditionally been cautious about the risks associated with decentralized finance. By providing a secure and compliant environment, the partnership aims to address these concerns and pave the way for wider adoption of DeFi solutions in the institutional market. The launch of Converge is expected to set a new standard for institutional-grade DeFi solutions, offering a robust infrastructure that meets the stringent regulatory requirements of institutional investors.

The partnership between Securitize and Ethena is part of a broader effort to integrate blockchain technology into the traditional financial system. As more institutions recognize the potential of DeFi, partnerships like this one are likely to become more common. The launch of the new blockchain platform is expected to enhance the service offerings of traditional financial institutions, helping them stay competitive in the rapidly evolving financial landscape.