Ethena Labs and Securitize have unveiled a new blockchain platform named Converge, designed to bridge traditional finance with DeFi, providing institutional solutions and products for retail investors.
What is Converge and How Does It Work?
Converge is a blockchain built on the Ethereum Virtual Machine (EVM) architecture, providing a framework for both permissioned and permissionless financial applications. This dual approach enables Converge to bridge traditional financial institutions with the rapidly evolving world of decentralized finance.
Institutional Capital and Tokenized Assets
The main focus of Converge is on institutional-grade applications, particularly those dealing with tokenized assets. Tokenization, which converts real-world assets into digital tokens, is gaining momentum in the financial sector, supported by Securitize. Converge will serve as the primary issuance platform for tokenized assets.
Key Features of the Converge Blockchain
Converge operates with multiple application tiers: a Permissionless DeFi Ecosystem for retail investors and Permissioned Applications for traditional financial institutions. It also enables the creation of new financial products leveraging tokenized securities.
Converge, supported by leading tech and financial firms, promises to transform the interaction between traditional finance and DeFi, providing robust custodial services and aiming to be the bridge between these two worlds.
