Ethena Labs and Securitize unveiled Converge, a new blockchain designed to bridge traditional finance and DeFi, offering institutional-grade solutions and tokenization opportunities.
What is Converge and How Will It Work?
Converge is a blockchain built on the Ethereum Virtual Machine (EVM), providing an environment for both permissioned and permissionless financial applications. This enables Converge to serve as a bridge between traditional financial institutions and the world of decentralized finance. Scheduled for a second-quarter mainnet launch, Converge aims to offer a unique combination of features designed to accommodate a diverse range of financial products. Ethena Labs and Securitize plan to release technical documentation and a developer testnet soon.
Institutional Capital and Tokenized Assets
Converge will focus on institutional applications, particularly those dealing with tokenized assets. The tokenization process finds extensive application in the financial sector, and Securitize has already issued over $2 billion in assets. Converge will act as the primary issuance layer for Securitize’s tokenized assets, paving the way for a broader range of financial instruments. The platform will be integrated with Ethena's stablecoins: USDe, USDtb, and iUSDe.
Key Features of the Converge Blockchain
Converge offers three application tiers: a permissionless DeFi ecosystem, permissioned applications, and new financial products. Features such as integration with iUSDe and USDtb meet KYC requirements and enable bridging DeFi and traditional finance. The system also supports the creation of new products leveraging tokenized securities.
Converge envisions the future in institutional adoption of blockchain technology. The platform integrates leading DeFi protocols and provides tools for interaction with the decentralized economy, positioning itself firmly at the crossroad of TradFi and DeFi.
