Ethena Labs and Securitize have unveiled Converge, a new blockchain that aims to bridge traditional financial systems and decentralized finance. This platform is geared towards institutional use, while also providing opportunities for retail investors.
What is Converge and How Does It Work?
Converge is a blockchain built on the Ethereum Virtual Machine (EVM) designed to support both open and permissioned financial applications. This flexibility allows Converge to act as a bridge between traditional financial institutions and DeFi innovations. Its mainnet launch is scheduled for the second quarter, promising a unique combination of features for diverse financial products.
Institutional Capital and Tokenized Assets
One of the primary focuses of Converge is the development of institutional-level tools for tokenized assets. Securitize has already issued more than $2 billion in blockchain-based assets, including instruments from major institutions such as BlackRock and Apollo. Using Ethena's stablecoins, the platform aims to simplify transactions and broaden investment options.
Key Features of the Converge Blockchain
Converge offers three application tiers catering to various market participants: 1) An open DeFi ecosystem; 2) Permissioned applications facilitating interaction with traditional finance; 3) New financial products leveraging Securitize's tokenized securities.
The Converge platform, developed by Ethena Labs and Securitize, aims to be a groundbreaking tool for bridging the worlds of traditional and decentralized finance. It seeks to integrate key DeFi protocols and provide the necessary infrastructure for institutional players.
