Ethena Labs and Securitize have unveiled their latest venture, Converge, a blockchain tailored for decentralized finance and tokenized assets.
This network will serve both retail and institutional investors, providing standard DeFi applications along with financial products that adhere to institutional standards.
Converge is constructed on Ethereum’s Virtual Machine, which enables existing Ethereum (ETH) applications and smart contracts to operate without any alterations. Ethena (ENA) intends to transition its DeFi ecosystem, currently holding close to $6 billion in assets, onto Converge.
Securitize, known for its focus on tokenizing real-world assets, plans to utilize this blockchain for issuing and managing digital securities.
Tokenized assets are digital versions of financial instruments such as stocks, bonds, and real estate.
Converge will enable institutions to engage with these assets on-chain while ensuring regulatory compliance. Leading institutional custodians, including Anchorage, Copper, and Fireblocks, will provide asset security.
DeFi Applications
The network will incorporate DeFi applications from collaborators like Pendle, Aave Labs, and Maple Finance. It will also facilitate interoperability through LayerZero and Wormhole, allowing for smooth asset transfers across different blockchains. Real-time price data will be provided by oracle services like RedStone and Pyth.
Ethena’s ENA token will be essential for enhancing the security of the network, while stablecoins USDe (USDe) and USDtb will facilitate transaction fees. The blockchain will feature both permissionless DeFi applications and permissioned options for institutional participants.
Ethena and Securitize view Converge as a potential remedy for regulatory challenges that have hindered institutional involvement in DeFi. By merging the efficiency of DeFi with a compliance-oriented framework, the network seeks to bridge the gap between conventional finance and blockchain-based markets.