In a groundbreaking development set to reshape the intersection of traditional finance and blockchain technology, Ethena Labs and Securitize have joined forces to launch Converge, a Layer-1 blockchain specifically designed for institutional capital flows. The network strategically focuses on integrating tokenized assets with DeFi infrastructure, creating an all-encompassing ecosystem that serves both retail and institutional investors seeking compliant access to blockchain innovations.
Converge’s architecture features full Ethereum Virtual Machine compatibility, enabling seamless integration with existing Ethereum-based smart contracts and decentralized applications. The platform implements a sophisticated three-tier system encompassing permissionless DeFi ecosystems, permissioned applications for traditional financial institutions, and innovative financial products utilizing tokenized securities. Ethena plans to migrate its existing DeFi ecosystem with nearly $6 billion in assets to Converge.
Converge revolutionizes finance with EVM compatibility and a tripartite structure bridging permissionless DeFi, institutional applications, and tokenized securities.
Network security is maintained through a staking mechanism utilizing ENA tokens with a permissioned validator set, while USDe and USDtb function as native gas tokens to streamline transaction processes.
Securitize brings substantial expertise to the partnership, having issued nearly $2 billion in on-chain assets through collaborations with major financial institutions including BlackRock, Apollo, Hamilton Lane, and KKR. As the primary issuance layer for tokenized assets on Converge, Securitize will facilitate the onboarding of diverse financial instruments beyond treasury products, greatly enhancing capital efficiency through expanded liquidity channels and investment opportunities. Unlike traditional DeFi platforms, Converge will operate with CeFi regulatory compliance to ensure institutional trust and security.
The platform’s institutional alignment is evidenced by its robust compliance features and validator network comprising traditional finance entities and centralized exchanges. Partnerships with institutional custodians such as Anchorage, Copper, Fireblocks, Komainu, and Zodia further strengthen the ecosystem’s appeal to institutional investors.
Converge supports the creation of institutional-grade financial products utilizing stablecoins and tokenized assets, while DeFi applications from partners like Horizon and Maple Finance are specifically designed for sophisticated investors. The project has scheduled its mainnet launch for Q2 2025, following the release of technical documentation and a developer testnet in the coming weeks.
Cross-chain interoperability is enabled through integration with LayerZero, Wormhole, and Oracle solutions from Pyth Network, positioning Converge as an all-encompassing bridge between traditional finance and the evolving DeFi landscape, capable of supporting trading across multiple asset classes including credit, fixed income, margin, and equity instruments.
