Ethena Labs and Securitize introduce Converge, a new blockchain aimed at bridging traditional financial systems with the world of decentralized finance.
What is Converge and How Will It Work?
Converge is a blockchain built on the Ethereum Virtual Machine (EVM), providing an environment designed to facilitate both permissioned and permissionless financial applications. This approach allows Converge to serve as a bridge between traditional financial institutions and the rapidly evolving world of decentralized finance. The blockchain aims to offer retail investors access to standard DeFi applications while catering to institutional investors with a robust, compliant infrastructure.
Institutional Capital and Tokenized Assets
One of the primary focuses of Converge is the facilitation of institutional-grade applications, particularly those dealing with tokenized assets. Tokenization, the process of turning real-world assets into digital tokens, is gaining traction in the financial sector, with Securitize playing a pivotal role. Converge will serve as the primary issuance layer for Securitize's tokenized assets, broadening the range of financial instruments. By integrating with Ethena's stablecoins, Converge aims to simplify transactions and provide institutional investors with advanced options in the DeFi space.
Key Features of the Converge Blockchain
Converge operates with three main application tiers designed to meet the needs of various market participants: a permissionless DeFi ecosystem, permissioned applications for traditional financial institutions to interact with blockchain, and the creation of new financial products leveraging Securitize's tokenized securities.
Converge aims to become a central platform linking traditional financial institutions and DeFi. With its features, it offers new opportunities for investors by combining the best of both worlds.
