On March 17, 2025, Ethena Labs published a report on Mirror detailing the information about the launch of its new upcoming blockchain, Converge. 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, with an expected launch in Q2 2025. Introducing @convergeonchain : The settlement network for traditional finance and digital dollars, powered by @ethena_labs and @Securitize Our vision is to provide the first purpose built settlement layer where TradFi will merge with DeFi, centered on USDe & USDtb and secured by… https://t.co/BdOMMflqNl pic.twitter.com/sYxS6p9T8W — Ethena Labs (@ethena_labs) March 17, 2025 Ehena Labs and Securitize unveil Converge Converge, the brainchild of Ethena Labs and Securitize, is a blockchain designed to advance DeFi and support tokenized asset ecosystems. While its main purpose is to provide access to standard DeFi applications geared toward retail investors, Converge will also feature a suite of apps and products developed in conjunction with partners, especially institutional investors. This means it can help to provide institutional capital with compliant access to the innovation and capital efficiency of DeFi. Ethena has said it will focus its institutional product offerings on Converge and try to migrate its existing DeFi ecosystem, which is currently valued at just under $6 billion in assets. 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 RWAs 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. Ethena and Securitize share big plans Guy Young, the Founder of Ethena 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. He acknowledged that the first category is important, but that they view the second as a much larger opportunity over the next decade. Ethena and Securitze are strategically positioned to dominate in this category, together. Converge plans to facilitate permissionless on-chain finance using three distinct areas operating within the same blockspace. Source: Ethena “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 Ethena 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 secure the network Both USDe and USDtb will be enable the network's native gas token, allowing for users to more easily… pic.twitter.com/a9zt75iY9l — Ethena Labs (@ethena_labs) March 17, 2025 Meanwhile USDe and USDtb, a stablecoin product developed in partnership between Ethena 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 responses 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 even 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 catalyzed 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 $0.38. Some skeptics pointed to the high cost of bootstrapping a new L1 as a potential limitation, while others suggested that Converge might be “bearish for DeFi and Ethereum.” They believe that a successful DeFi protocol like Ethena building its own chain rather than building on Ethereum could fragment the ecosystem and divert innovation away from the broader DeFi space. Users are also concerned that Ethena is prioritizing corporate gain over the decentralized ethos DeFi is known for, even while conceding that a new chain maximizes ENA’s value. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
