Converge Launches New Blockchain Targeting Retail and Institutional Investors

Stablecoin developer Ethena Labs and real-world asset (RWA) tokenization company Securitize are launching a new blockchain for retail and institutional investors

Stablecoin developer Ethena Labs and real-world asset (RWA) tokenization firm Securitize are joining forces to launch a new blockchain for retail and institutional investors seeking access to the Decentralized Finance (DeFi) and tokenization economies.

According to a March 17 announcement, the forthcoming Converge blockchain is an Ethereum Virtual Machine that will provide retail investors with access to “standard DeFi applications.” It will also be able to handle institutional-grade offerings that will help bridge traditional finance with DeFi opportunities.

Converge will launch with various product offerings, including Ethereal, Morpho, Maple Labs, Pendle and Aave Labs’ Horizon.

Converge’s RWA infrastructure will benefit from Securitize’s growing presence in the tokenization market, with nearly $2 billion minted across various blockchains. The company recently announced that BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has now surpassed $1 billion in net assets one year after launch.

The Converge blockchain will receive custodial support from Anchorage and Copper as well as custodial support from Securitize’s latest partner, RedStone.

On the DeFi side, Converge will launch with support for Ethena’s native governance token, ENA. Ethena’s USDe (USDE) and USDtb stablecoins will serve as the network’s gas tokens.

Institutional DeFi on the rise

It seems that the launch of Converge marks the next stage in a broader collaboration between Ethena and Securitize to introduce new investors to the tokenized economy.

Earlier this year, the two firms partnered to integrate Ethena’s stablecoins and yield-bearing products with Securitize’s capital markets services.

As part of this partnership, Ethena is also bringing its institutional-grade liquid staking product, Liquid Stake, to the Converge blockchain.

At the beginning of 2023, Ethena announced plans to launch its own Layer 1 blockchain powered by the Ethereum Virtual Machine. The chain will be used to support Ethena’s growing suite of DeFi products, which includes its stablecoins, yield-bearing products and governance platform.

Converge will benefit from Securitize’s experience in tokenizing private markets. Since 2017, Securitize has helped companies raise more than $2 billion in capital through tokenized offerings.

The company’s offerings range from equity and debt to structured products and digital assets. Its institutional investors include Harvest Global, Tiger Global, DNS Capital and more.

Earlier this year, Securitize announced that it is expanding its tokenization services to support the booming market for single-family rentals (SFHs).

The move will benefit from Securitize’s partnership with PointCentral, a property management software firm. Together, the companies will offer a complete solution for institutions that are investing in large-scale SFH syndications.

Among its recent partnerships, Securitize has teamed up with trading technology firm Integral to create a liquidity solution for institutions investing in BUIDL, a flagship product by BlackRock.

The partnership will enable seamless integration between Integral’s OMS and Securitize’s DirectSegment.

Among its latest endeavors, Securitize has partnered with macroeconomic data provider RedStone to provide institutional-grade price discovery services for the Converge blockchain.