As the tokenization of real-world assets (RWA) gains momentum in the industry, Ethena Labs and Securitize announced on March 17 the launch of Converge
Ethena Labs and Securitize announced on March 17 the launch of Converge, a layer-1 blockchain compatible with the Ethereum Virtual Machine (EVM). The initiative aims to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi) by offering a unified platform for tokenized assets and digital dollars.
“Our vision is to provide the first purpose-built settlement layer where TradFi will merge with DeFi, centered on USDe and USDtb and secured by ENA,” highlighted.
Converge, whose developer testnet is set to launch soon and mainnet deployment is expected in Q2 2025, hopes to redefine financial interactions by serving both retail and institutional investors.
“Applications will be built on Converge specifically to enable TradFi to interact on-chain with assets powered by iUSDe, USDe, and Securitize.” According to the announcement, five protocols have already committed to support Converge, building and distributing institutional-grade DeFi products on the network: Pendle, Morpho, Maple, Horizon, Ethereal.
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Benefits for retail users include permissionless DeFi access, allowing engagement without the need for KYC verification. For institutions, Converge offers permissioned applications that are able to meet regulatory compliance.
The staking mechanism of blockchain Converge uses Ethena Labs’ governance token, ENA, while USDe and USDtb are used as native gas tokens, whose primary purpose is to facilitate transactions on the network. “USDe, USDtb, and sENA will be at the core of the chain. Converge will be built with a permissioned set of institutional validators who will need to stake ENA to secure the network. Both USDe and USDtb will enable the network’s native gas token, allowing users to transact more easily and with less friction.”
At the time of publication, Ethena price was quoted at $0,3602 with a drop of 1.9% in the last 24 hours.
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