Ethena Labs and Securitize have recently unveiled Converge, a groundbreaking blockchain platform tailored for decentralized finance and tokenized assets. The network is poised to serve a broad spectrum of investors, encompassing both retail and institutional players, by offering a diverse range of DeFi applications alongside financial products that adhere to institutional standards.
Converge is intricately constructed on Ethereum’s Virtual Machine, enabling seamless functionality for existing Ethereum-based applications and smart contracts without necessitating any modifications. Ethena (ENA) is gearing up to transition its robust DeFi ecosystem, which currently houses close to $6 billion in assets, onto the Converge blockchain.
Securitize, renowned for its expertise in tokenizing real-world assets, will leverage the platform to facilitate the issuance and management of digital securities. Tokenized assets, which represent various financial instruments like stocks, bonds, and real estate, are set to be seamlessly integrated within Converge, enabling institutional players to engage with these assets on-chain while maintaining regulatory compliance. To bolster security measures, institutional-grade custodians like Anchorage, Copper, and Fireblocks will oversee the safekeeping of these assets.
The platform will integrate a suite of DeFi applications from key partners including Pendle, Aave Labs, and Maple Finance. Additionally, Converge will support interoperability through LayerZero and Wormhole, facilitating seamless asset transfers across different blockchains. Real-time price data will be supplied by top-tier oracle providers like RedStone and Pyth.
Ethena’s native token, ENA, will be instrumental in securing the network, while stablecoins such as USDe (USDe) and USDtb will be utilized for transaction fees. Notably, the blockchain will offer a blend of permissionless DeFi applications and permissioned offerings tailored for institutional users.
Ethena and Securitize view Converge as a pivotal solution to the regulatory hurdles that have hindered institutional engagement with DeFi. By amalgamating DeFi’s efficiency with compliance-centric infrastructure, the network aims to serve as a conduit between traditional finance and blockchain-based markets, bridging the gap and fostering greater adoption among institutional players.