Ethena Labs and Securitize Team Up To Launch New Converge Blockchain
Highlights
- Ethena and Securitize are launching a new blockchain.
- The blockchain is tailor-made for institutions keen on dabbling in DeFi.
- There is rising institutional interest in DeFi in recent months.
Ethena Labs and Securitize have announced the incoming launch of Converge, a blockchain tailor-made for DeFi and tokenized assets. The incoming blockchain has a deep pool of partners angling to roll out offerings with parties eyeing a Q2 launch.
Converge Blockchain Set To Onboard An Avalanche Of Institutional Capital
According to a press release, Ethena Labs and Securitize are proceeding with the launch of Converge. The joint project will serve as a settlement layer for institutions seeking to explore decentralized finance (DeFi) offerings.
At the heart of the Converge blockchain will be Ethena’s USDe and Buidl’s USDtb with parties eyeing DeFi applications, particularly settlement for tokenized assets and stablecoins. Per the statement, the Converge blockchain will launch in the second quarter of 2025 with a suite of products for institutional investors.
“We’re developing Converge to fill a clear gap in the market as the go-to settlement layer for institutional-grade DeFi and tokenized assets,” said Ethena founder Guy Young.
The partnership will see Ethena migrate its entire DeFi offerings valued at around $6 billion to Converge. On the other hand, Securitize pledges to issue its tokenized assets on the incoming blockchain.
The statement disclosed that Converge will be interoperable with the Ethereum Virtual Machine, giving it a range of functionalities. The incoming blockchain will be able to run DApps and smart contracts on Ethereum without the requirement of modifications.
Several Projects Have Indicated Support For Converge
Per the press release, a handful of projects have declared support for the Converge blockchain. The growing list of protocols includes Horizon by Aave, Ethereal, MorphoLabns, Pendle, and Maple Finance.
For custodial support, Securitize and Ethena tap Anchorage, Komainu, Zodia, Fireblocks, and Copper for their institutional-grade capabilities. Per the statement, the Converge blockchain’s interoperability capabilities will be spearheaded by Wormhole and LayerZero.
Rising Institutional Interest In DeFi
Institutional interest in DeFi has spiked in recent months with big players signaling an intention to wade into the space. Bitwise’s partnership with Maple Finance for access to on-chain credit accentuates the growing institutional appetite.
Securitize CEO Carlos Domingo disclosed that while institutions are showing interest, unclear regulations have dampened their interest in the space. Domingo says positive regulations including the OCC clearing US banks and Converge’s in-built functionalities will smoothen the curve for institutions turning to DeFi.
“With Converge, we’re solving this problem by creating a purpose-built blockchain designed to seamlessly bridge traditional finance with the opportunity of DeFi,” said Domingo.
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