Ethena Labs and Securitize Launch Converge Blockchain for Institutional DeFi

Ethena Labs and Securitize have joined forces to introduce Converge, a new blockchain designed to facilitate institutional capital flows and integrate tokenized assets. This layer-1 blockchain is specifically tailored to support and advance decentralized finance (DeFi) and tokenized assets, providing a robust platform for institutional investors to access the innovations and capital efficiency of DeFi in a compliant manner.

Converge is built as an Ethereum Virtual Machine, making it compatible with existing Ethereum-based applications. It will offer a range of DeFi applications and products specifically designed for institutional investors, helping them navigate the complexities of the DeFi landscape. Ethena Labs will focus its institutional products on Converge and seek to migrate its existing DeFi ecosystem, which currently holds nearly $6 billion in assets. This migration will enable institutional investors to leverage the full potential of DeFi while adhering to regulatory standards.

Securitize, known for its expertise in tokenizing real-world assets (RWA), will issue existing and future tokenized assets on Converge. The platform will continue to facilitate the interoperability of its numerous protocol integrations, ensuring a seamless experience for users. ENA, Ethena Labs' native governance token, will serve as a stakable asset on Converge, with USDe and USDtb acting as the network's gas tokens. This setup will enhance the utility and functionality of the blockchain, making it an attractive option for institutional investors.

The launch of Converge is expected in the second quarter of 2025, marking a significant milestone in the integration of traditional finance and DeFi. This new blockchain is poised to bridge the gap between these two worlds, offering a compliant and efficient platform for institutional capital flows. By providing a suite of applications and products tailored for institutional investors, Converge aims to democratize access to the innovations and capital efficiency of DeFi, fostering growth and development in the sector.

Institutional DeFi is gaining traction as traditional financial institutions seek to optimize their operations and access new yield opportunities. The integration of real-world assets (RWAs) into the DeFi ecosystem is accelerating this trend, with forecasts suggesting a significant growth in the tokenization market. RWAs are attracting big investors because they address pricing inefficiencies in both traditional and digital assets, offering new opportunities for yield and capital efficiency.

Converge's RWA infrastructure will benefit from Securitize's growing presence in the tokenization market. The platform will receive custodial support from Anchorage, Copper, and Securitize's latest partner, RedStone, ensuring the security and reliability of the assets on the blockchain. This support will be crucial in attracting institutional investors who require robust custodial solutions to manage their assets in the DeFi ecosystem.

The launch of Converge represents a significant step forward in the integration of traditional finance and DeFi. By providing a compliant and efficient platform for institutional capital flows, Converge aims to democratize access to the innovations and capital efficiency of DeFi. This new blockchain is poised to bridge the gap between these two worlds, fostering growth and development in the sector and attracting institutional investors seeking to optimize their operations and access new yield opportunities.