Ethena Labs and Securitize Launch Converge Blockchain for TradFi and DeFi Integration

Ethena Labs and Securitize have introduced Converge, a new Ethereum Virtual Machine (EVM)-compatible Layer-1 blockchain designed to bridge traditional finance (TradFi) and decentralized finance (DeFi). This network aims to act as a settlement layer for tokenized assets and digital dollars, with a developer testnet set to launch soon and a mainnet rollout expected in the second quarter of 2025.

Converge is built to support developers and institutional investors, integrating key blockchain infrastructure providers such as LayerZero, Pyth Network, Wormhole, and RedStone. The network’s staking mechanism will utilize ENA, Ethena’s governance token, while USDe and USDtb will serve as the platform’s native gas tokens, enabling seamless transactions. The goal is to create a purpose-built financial ecosystem secured by ENA and centered around digital asset settlements.

One of Converge’s strategic initiatives is the incorporation of real-world asset (RWA) tokenization, led by Securitize. The company has already issued around $2 billion in tokenized assets and will use Converge to expand beyond treasury-backed products. This shift aims to bring a wider range of securities, including credit, equities, and fixed-income instruments, into the blockchain space.

Converge’s hybrid approach to financial integration is a major innovation. The platform will offer permissionless DeFi access, allowing users to engage in financial activities without requiring KYC verification. Simultaneously, it will provide permissioned applications tailored for TradFi institutions, ensuring compliance with regulatory requirements. This dual approach is expected to facilitate institutional capital flows into DeFi, addressing the growing demand for blockchain-based financial solutions.

The introduction of Converge comes at a time of rapid growth in the tokenized asset market. The total value of real-world assets (RWAs) on-chain has significantly increased, reflecting a surge in adoption. The market now includes thousands of asset holders and issuers, demonstrating the sector’s expanding reach.

This shift is further supported by the rise in stablecoin adoption. The total stablecoin market cap has climbed steadily, with Ethena’s USDe emerging as one of the top stablecoins in the ecosystem. These trends highlight the increasing convergence of traditional and decentralized finance, positioning Converge as a key player in this evolving landscape.

Converge will provide retail investors with access to a variety of DeFi applications, including Ethereal, Morpho, Maple Labs, Pendle, and Aave Labs’ Horizon. The blockchain will also support institutional-grade offerings, facilitating the tokenization of real-world assets (RWAs) and providing a regulated environment for tokenized securities. This initiative aims to optimize operations and access new yield opportunities for traditional financial institutions.

Securitize's extensive experience in the tokenization market will be a significant asset for Converge. The company has minted nearly $2 billion across various blockchains and recently announced that BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has surpassed $1 billion in net assets within a year of its launch. This partnership underscores the growing interest in institutional DeFi, where traditional financial institutions adopt regulatory-compliant DeFi systems.

Converge will receive custodial support from Anchorage, Copper, and RedStone. On the DeFi side, users will be able to stake Ethena’s native governance token, ENA. Ethena’s USDe (USDE) and USDtb stablecoins will serve as the network’s gas tokens, ensuring seamless transactions and interactions within the ecosystem.

The launch of Converge is part of a broader trend where RWAs are accelerating the integration of TradFi and DeFi. These assets address pricing inefficiencies in both traditional and digital markets, attracting big investors. The total value of RWAs onchain, excluding stablecoins, is fast approaching $20 billion across more than 90,500 holders. This growth is driven by significant issuance volumes in stablecoins, US Treasury, and private credit debt.

Ethena Labs and Securitize are migrating their ecosystems to Converge, which is designed to be the first purpose-built settlement layer where TradFi merges with DeFi. This blockchain will serve as a playground for both permissioned and permissionless financial applications, fostering innovation and collaboration between traditional finance and decentralized finance. The platform aims to create a regulated environment for tokenized securities, ensuring compliance and security for all participants.