Ethena Labs and Securitize have launched Converge, a blockchain aiming to integrate traditional finance with DeFi.
What is Converge and How It Works
Converge is a blockchain built on the Ethereum Virtual Machine (EVM), providing an environment for both permissioned and permissionless financial applications. It aims to bridge traditional financial institutions with DeFi, offering retail investors access to standard DeFi applications and institutional-focused infrastructure. A mainnet launch is scheduled for the second quarter, with Ethena Labs and Securitize preparing technical documentation and a developer testnet.
Institutional Capital and Tokenized Assets
Converge focuses on institutional applications and tokenized assets. Tokenization, the process of converting real-world assets into digital tokens, is gaining traction in the financial sector. Securitize has already issued over $2 billion in on-chain assets. Converge will serve as the primary issuance layer for Securitize's tokenized assets, broadening the range of financial instruments offered.
Key Features of the Converge Blockchain
Converge operates with three application tiers to meet the needs of various market participants: 1. A permissionless DeFi ecosystem supporting USDe-enabled applications and projects developed by Ethena Labs; 2. Permissioned applications for traditional financial institutions with KYC compliance; 3. A new financial product tier combining Securitize's tokenized securities.
Converge aims to blend elements of traditional and decentralized finance, creating an interactive space for diverse types of investors.
