Ethena Labs, Securitize Launch Converge Blockchain for Institutional Capital
2min read Ethena Labs and Securitize have jointly launched Converge, a layer-1 blockchain designed to facilitate institutional capital flows and integrate tokenized assets with decentralized finance (DeFi). This initiative is aimed at creating a specialized network that supports both permissioned and permissionless financial applications, catering to the increasing demand for secure and efficient blockchain solutions in the financial industry.
The primary applications for Converge include supporting DeFi speculation and providing storage and settlement for stablecoins and tokenized assets. While speculative activity remains a core use case, the firms believe that a more significant opportunity lies in the institutional adoption of tokenized financial products. Securitize, which has issued approximately $2 billion in on-chain assets, including BlackRock’s BUIDL fund and products from apollo, hamilton lane, and kkr, will serve as the primary issuance layer for tokenized assets on Converge. This integration will expand Securitize’s scope beyond treasury products to a broad range of financial instruments.
Ethena Labs will contribute its suite of stablecoins and yield-bearing assets, including USDe, USDtb, and iUSDe, to Converge. These assets will facilitate the development of new institutional-grade financial products, enhancing the blockchain’s utility and appeal to institutional investors.
Converge is designed as an Ethereum Virtual Machine (EVM)-compatible execution environment, ensuring seamless integration with existing Ethereum-based applications. Institutional validators will secure the network by staking ENA tokens, while USDe and USDtb will function as native gas tokens, simplifying transactions. The blockchain will operate with three parallel application tiers: a permissionless DeFi ecosystem, permissioned applications for traditional financial institutions, and new financial products leveraging Securitize’s tokenized securities.
The permissionless DeFi ecosystem will support USDe-enabled applications and projects incubated by Ethena Labs. The permissioned applications tier will allow traditional financial institutions to interact with compliant parties using iUSDe and USDtb. The final tier will consist of new financial products, including credit, fixed-income leverage, and equity trading via spot and perpetual swaps, enabled by Securitize’s tokenized securities.
Several protocols have committed to building on Converge, focusing on institutional-grade DeFi solutions. These include Horizon by Aave Labs, Pendle, Morpho Labs, Maple Finance, and EtherealDEX. Additionally, Converge will integrate major infrastructure providers such as LayerZero for cross-chain interoperability, Pyth Network for price oracles, and Wormhole for asset bridging. Institutional custodians, including Anchorage, Copper, Fireblocks, Komainu, and Zodia Custody, will offer asset management and key custody services, further enhancing the blockchain’s security and reliability.
Ethena Labs and Securitize plan to release technical documentation in the coming weeks, followed by a developer testnet. The mainnet launch is scheduled for the second quarter, marking a significant milestone in the development of institutional-focused blockchain solutions. This launch underscores the growing importance of blockchain technology in the financial sector and its potential to revolutionize traditional financial systems.
