Ethena Labs and Securitize Launch Converge, a Blockchain Network Tailored for Institutional Investors

Ethena Labs and Securitize have announced the launch of Converge, a blockchain designed to support decentralized finance and tokenized assets.

Ethena Labs and Securitize have announced the launch of Converge, a new blockchain designed to support decentralized finance (DeFi) and tokenized assets, catering to both retail and institutional investors.

The network will feature standard DeFi applications like those found on Ethereum, but also financial products that comply with institutional requirements, such as tokenized equities and hedge funds.

It is built on Ethereum’s Virtual Machine, allowing existing Ethereum (ETH)-based applications and smart contracts to function without modification. Ethena (ENA) plans to move its DeFi ecosystem, which holds nearly $6 billion in assets, onto Converge.

Securitize, specialized in tokenizing real-world assets, will use the blockchain to issue and manage digital securities, such as tokenized equities from deep-pockets hedge funds and private credit strategies. These assets will be accessible to institutions for on-chain interaction while remaining compliant with regulations.

Institutions will be able to custody their assets with Converge’s integration of institutional-grade custodians, including Anchorage, Copper, and Fireblocks.

DeFi applications and interoperability

The network will include DeFi applications from partners such as Pendle, Agave Labs, and Maple Finance. It will also support interoperability through LayerZero and Wormhole, enabling the seamless transfer of assets across chains.

Oracle providers like RedStone and Pyth will be integrated to supply Converge with real-time price data. Ethena’s ENA token will be used for securing the network, while the stablecoins USDe (USDe) and USDtb will be utilized for transaction fees.

The blockchain will feature a hybrid structure, including both permissionless DeFi applications and permissioned offerings for institutional users.

“Despite the promise of DeFi, institutions have largely been unable to participate due to regulatory barriers and a lack of compliant infrastructure,” said Sameer Chauvri, CEO of Ethena Labs.

“We are combining the best of both worlds by launching Converge, a hybrid blockchain that will bridge traditional finance and blockchain-based markets.”

Tom Berenson, CEO of Securitize, added: “This collaboration marks a significant milestone in the evolution of financial markets.”