In an exciting development for the DeFi space, Ethena Labs, the firm behind the Ethena protocol and USDe stablecoin, has launched Converge, a new blockchain specifically designed to cater to institutional DeFi needs. The platform, which is EVM-compatible, has been launched in partnership with Securitize, a leading tokenization firm renowned for its work on projects like the BUIDL fund for BlackRock.
According to the official announcement from Ethena Labs, Converge is envisioned as a specialized settlement layer where traditional finance (TradFi) will converge with decentralized finance (DeFi). It aims to support a wide range of use cases, particularly focusing on stablecoins such as USDe and USDtb. The protocol is intended for settlement of both spot and leveraged DeFi trading, as well as for tokenizing real-world assets (RWA), marking a significant step forward in bridging the gap between traditional and decentralized finance.
Ethena Labs highlighted that, while speculation remains a key use case for crypto, the real growth potential lies in institutional DeFi over the next decade. They see this emerging sector as less competitive but considerably larger, positioning their blockchain as a solution for the future of finance. Ethena and Securitize believe they are uniquely positioned to capture this market opportunity.
Securitize has long been a leader in the tokenization of financial products, having issued over $2 billion in assets through various on-chain securities, including major funds from Apollo, Hamilton Lane, KKR, and BlackRock’s BUIDL fund. With Converge, Securitize plans to issue tokenized funds and assets, extending its reach across the finance market.
Furthermore, Ethena Labs announced that five major DeFi protocols have already deployed their institutional-grade products on the Converge blockchain. These include well-known projects like Horizon by Aave Labs, Pendle Finance, Morpho Labs, Maple Finance, and Ethereal DEX, signaling strong support for the new platform in the DeFi space.
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