Ethena Labs launches Converge, a purpose-built EVM blockchain optimized for both retail and institutional decentralized finance (DeFi) and tokenized assets

In the post, Converge is described as a purpose-built EVM (Ethereum Virtual Machine) blockchain optimized for both retail and institutional decentralized finance (DeFi) and tokenized assets

Ethera Labs is launching a new blockchain, Converge, which will be optimized for both retail and institutional decentralized finance (DeFi), as well as tokenized assets.

The chain is expected to launch in Q2 2025 and will be powered by Ethers Labs and Securitize.

Institutions will be able to participate in a whitelisted capacity with a focused subset of apps and products.

Ehena will focus its institutional product offerings on Converge and plans to migrate its existing DeFi ecosystem, currently valued at just under $6 billion in assets, to the chain.

Securitize, a company making giant moves in the RWA sector, boasting nearly $2 billion minted RWAs across multiple blockchains, will focus on existing issues and future tokenized assets on Converge, while continuing to facilitate interoperability across its many protocol integrations.

Converge will also benefit from apps and products on-chain from its initial partners including Pendle, Aave Labs’ Horizon project, Ethereal, Morpho, and Maple Finance.

As RWA are deployed on Converge, custodial support will be provided by institutional-grade providers including Anchorage, Copper, Fireblocks, Komainu, and Zodia.

Converge will also feature interoperability via LayerZero, Wormhole and oracle support from RedStone, Pyth.

Ehena and Securitize share big plans

Guy Young, the Founder of Ehena said in the Mirror post that it is building Converge to become the “go-to settlement layer for institutional-grade DeFi and tokenized assets.”

“We see two core use cases for blockchains: settlement for speculation, and the storage and settlement of stablecoins and tokenized assets,” he said.

Young claims that the first category is important, but they view the second as a much larger opportunity over the next decade. Ehena and Securitze are strategically positioned to dominate in this category, together.

“We are thrilled to be teaming up with Securitize, the market leader in tokenizing RWAs and tokenization to bring Converge to market, and are confident that our combined expertise uniquely positions us to realize our shared vision together,” Young added.

“Institutions have been watching DeFi evolve with interest, but the lack of regulatory clarity and institutional-grade infrastructure has hindered their participation,” said Carlos Domingo, Co-Founder and CEO of Securitize.

Domingo said that Converge allows them to solve this problem by creating a purpose-built blockchain designed to seamlessly bridge traditional finance with the opportunity of DeFi.

“By combining Ethena’s innovation in DeFi with Securitize’s leadership in tokenizing real-world assets, Converge sets a new standard for how institutions can confidently engage with on-chain financial markets,” Domingo declared.

Converge will be compatible with the Ethereum Virtual Machine (EVM), which will enable it to run Ethereum-based smart contracts, dApps, and tools without modification. It will also boast performance that can keep up with industry-leading blockchains.

The implementation of DeFi applications designed for institutional use will be vetted by Ehena and Securitize via a whitelist to ensure compliance. However, Converge will be available to all users, giving them access to permissionless DeFi applications and permissioned institutional-grade offerings.

Also, ENA, Ethena’s native governance token, will serve as a stakeable asset (via sENA) for Converge, helping to secure the network with a permissioned validator set composed of traditional finance entities and centralized exchanges.

USDe, USDtb and sENA will sit at the core of chain

Converge will be built with a permissioned set of institutional validators who will need to stake ENA to help sere the networkBoth USDe and USDtb will be enable the network's native gas token, allowing for users to more easily interact with the chain. The token will rotate on a regular basis to ensure no single token is advantaged in the long term.

Meanwhile USDe and USDtb, a stablecoin product developed in partnership between Ehena and Securitize, will be used as gas on the network.

Questions about the relevance of another blockchain

The announcement of Converge’s upcoming launch has triggered mixed reactions from crypto and DeFi communities, with some expressing enthusiasm and others skepticism.

Users on X reacting to the news have praised its role as a “settlement layer bridging TradFi & DeFi,” with one user evem going as far as calling it a “$50B+ game-changer” due to its focus on stablecoins and tokenized assets.

The interest major DeFi protocols like Pendle, Aave Labs’ Horizon, Morpho, and Maple Finance, have shown it alongside custodial support from Anchorage and Copper, has catalysed confidence in Converge as a strong foundation for institutional-grade finance.

Following the announcement, there was a 5% price increase recorded by Ethena’s ENA token, trading above $0.3