Converge Launches EVM-Compatible Blockchain Merging TradFi and DeFi

Ethena Labs and Securitize have launched Converge, a pioneering EVM-compatible Layer-1 blockchain designed to integrate traditional finance (TradFi) with decentralized finance (DeFi). This innovative blockchain aims to enhance the accessibility and efficiency of tokenizing financial products, with a developer testnet scheduled to launch soon. The project emphasizes the significance of USDe and USDtb, which will serve as the network’s native gas tokens essential for transaction processing.

Converge will operate as an EVM-compatible network, ensuring a seamless development experience for builders. It will integrate key infrastructure providers, including LayerZero, Pyth Network, Wormhole, and RedStone, to facilitate robust interconnectivity within the blockchain ecosystem. The network will utilize ENA, Ethena’s native governance token, for staking. The project’s strategic focus is on token interoperability, aiming to provide the first purpose-built settlement layer where TradFi merges with DeFi.

Securitize, a leading provider of real-world asset (RWA) tokenization, plans to launch tokenized assets on Converge. This will expand the tokenization of financial products beyond treasury-backed assets and funds to include a wider range of securities across multiple asset classes. Ethena will natively issue USDe, USDtb, and iUSDe on Converge, exporting these assets into TradFi-compatible formats to attract institutional investors, a key growth area for decentralized finance.

Converge is built on three core principles: permissionless DeFi access, permissioned TradFi applications, and permissioned financial products. These pillars are designed to enhance the adoption of blockchain-based financial products across diverse user bases. Users can participate in the decentralized financial ecosystem powered by USDe without undergoing KYC procedures. Traditional financial institutions will interact securely with KYC-compliant parties through iUSDe and USDtb. The platform will support various tokenized assets issued by Securitize, facilitating access to credit leverage, fixed-income products, and equity trading.

The launch of Converge aligns with the rapid growth of the RWA market. The on-chain value of RWAs has reached significant levels, marking substantial expansion in the sector. With over 90,550 asset holders and 117 active asset issuers, the RWA sector demonstrates substantial growth. The total value of stablecoins has also shown a rise, with Ethena’s USDe emerging as a notable player. This trend highlights the momentum behind tokenized assets and the potential for increased institutional participation in the DeFi landscape.

As Converge gears up for its mainnet rollout, it embodies a significant step forward in merging the capabilities of both financial realms. The project aims to enhance financial accessibility and efficiency, paving the way for increased tokenization and institutional participation. By merging Ethena’s DeFi influence with Securitize’s expertise in tokenized securities, Converge aims to fill the existing gap between TradFi and DeFi, ultimately driving the growth and adoption of blockchain-based financial products.