Ethena Labs and Securitize have announced Converge, an Ethereum-compatible blockchain designed to bridge institutional finance and decentralized finance. Expected to launch in the second quarter of 2025, Converge will provide a settlement layer with built-in compliance measures, positioning itself as a major player in tokenized financial products.
A Purpose-Built Network for Institutional Adoption
Converge aims to streamline the adoption of tokenized assets by offering built-in know-your-customer procedures and custodial services. The blockchain will integrate Securitize’s $2 billion in tokenized assets, including BlackRock’s BUIDL fund and credit products from Apollo, Hamilton Lane, and KKR. Ethena will migrate its $6 billion DeFi ecosystem to Converge, bringing stablecoins like USDe, USDtb, and iUSDe to the network.
Ethena founder Guy Young emphasized the necessity of a compliant blockchain, stating,
We’re developing Converge to fill a clear gap in the market as the go-to settlement layer for institutional-grade DeFi and tokenized assets.
Several DeFi protocols, including Aave Labs, Pendle, Morpho, and Maple Finance, have committed to building on Converge. Institutional custodians such as Anchorage, Copper, Fireblocks, and Zodia will provide asset security, while LayerZero and Wormhole will enhance cross-chain interoperability. The blockchain will utilize Ethena’s ENA token for network security, with USDe and USDtb serving as gas tokens for transactions.
Carlos Domingo, CEO of Securitize, noted:
By combining Ethena’s innovation in DeFi with Securitize’s leadership in tokenizing real-world assets, Converge sets a new standard for how institutions can confidently engage with on-chain financial markets.
With stablecoin transaction volumes exceeding $11 trillion annually and DeFi protocols processing billions in daily trading volume, Converge could capture a significant share of the rapidly growing tokenized asset market. Its ability to support both permissioned and permissionless applications makes it an attractive alternative for institutions hesitant to engage with traditional DeFi.
