Ethena, a leading DeFi protocol, has revealed plans to introduce a new Layer-1 blockchain named Converge, developed through collaborations with Celestia—a data availability network—and Arbitrum, a Layer-2 scaling solution.
Ethena, a leading DeFi protocol, is introducing a new Layer-1 blockchain named Converge, developed in collaboration with Celestia—a data availability network—and Arbitrum, a Layer-2 scaling solution. The initiative also includes a partnership with real-world asset (RWA) platform Securitize.
The Converge blockchain is designed to offer rapid transaction speeds and a seamless user experience while providing full compatibility with the Ethereum Virtual Machine (EVM). This design will enable existing Ethereum-based DeFi applications to integrate smoothly into the Converge ecosystem. Ethena intends for Converge to become a key infrastructure layer that supports the growing demand for tokenized real-world assets within a decentralized framework.
Ethena’s own stablecoins, USDe and USDtb, will be used as gas tokens for transactions on the Converge blockchain. These stablecoins will not only enable cost-effective and stable transaction processing but also facilitate smooth on- and off-ramps for tokenized RWAs. The cross-chain vision for Converge includes support for assets from multiple blockchain ecosystems, such as Ethereum, Solana, and Arbitrum, without disrupting liquidity or user flow. This fluid interoperability is expected to simplify user access and enhance capital efficiency across DeFi platforms, especially as more real-world financial products transition to blockchain networks.
Converge’s foundational security will be underpinned by the Converge Validator Network (CVN), which will serve as the blockchain’s primary safeguarding mechanism. The CVN will operate with discretionary powers, enabling it to take action in situations that could compromise user assets or the overall integrity of the network. Validator nodes will stake Ethena’s native governance token, ENA, in a mechanism designed to maintain network stability and incentivize active participation. Participants, including node operators and users who delegate their tokens, will be eligible to receive a share of the network’s transaction fees and other ecosystem rewards. This approach integrates security, governance, and economic participation in a single coordinated structure.
Further details regarding validator selection criteria and operational processes will be made public following the launch of the Converge mainnet. The mainnet is scheduled for rollout in Q2 2025, and a developer-focused testnet is expected to go live in the coming weeks. Initially, this testnet will be made available to infrastructure partners before expanding to the broader developer community.
The launch of Converge comes at a time when traditional financial institutions are increasingly looking to tokenize their assets using blockchain platforms. Ethena’s strategy aligns with this trend, as it seeks to enable smoother integration of real-world financial products into the decentralized landscape. A key focus of the initiative is to support on-chain deployment of products similar to BlackRock’s BUIDL money market fund, which debuted in 2024 and has since reached a market capitalization of $2.3 billion.
By offering a fast, secure, and interoperable blockchain tailored to the needs of both institutional and decentralized finance players, Converge aims to be a foundational layer in the ongoing convergence of traditional finance and DeFi. Ethena’s latest venture highlights a growing interest in building decentralized infrastructures capable of accommodating both crypto-native and institutional-grade assets.
