On March 17, 2025, Ethena Labs, in collaboration with Securitize, announced the launch of Converge, a purpose-built Ethereum Virtual Machine (EVM) blockchain designed to bridge traditional finance (TradFi) and decentralized finance (DeFi).
The blockchain is set to go live in Q2 2025 and will serve as a settlement layer for institutional-grade DeFi and tokenised assets, with a focus on stablecoins like USDe and USDtb.
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Converge’s role in tackling two fundamental blockchain
Guy Young, Founder of Ethena Labs, emphasised Converge’s role in addressing two core blockchain use cases: “settlement for speculation, and the storage and settlement of stablecoins and tokenised assets.” He noted that while speculation remains essential, the latter represents a “much larger opportunity over the next decade.”
Converge is designed to provide compliant access to DeFi for institutional investors, combining Ethena’s DeFi expertise with Securitize’s leadership in tokenizing real-world assets (RWAs).
Also, Carlos Domingo, Co-Founder and CEO of Securitize noted the challenges institutions face in engaging with DeFi, stating, “The lack of regulatory clarity and institutional-grade infrastructure has hindered their participation.”
Converge aims to solve this by offering a blockchain tailored to integrate TradFi with DeFi opportunities seamlessly.
Converge will feature a permissioned validator set, with institutional players staking Ethena’s native token, ENA, to secure the network. The blockchain will also leverage USDe and USDtb as gas tokens, simplifying user transactions.
Major DeFi protocols like Pendle, Aave Labs’ Horizon, Morpho, and Maple Finance have already committed to building on Converge alongside custodial support from industry leaders such as Anchorage, Fireblocks, and Copper.
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Addressing challenges in the DeFi landscape
However, the introduction of a new Layer-1 blockchain comes with significant challenges, including the potential risk of fragmenting the DeFi ecosystem and shifting innovation away from Ethereum. Additionally, the high costs associated with bootstrapping a blockchain and ensuring regulatory compliance could pose hurdles to adoption.
Despite these concerns, Ethena and Securitize remain confident in their vision. “We are thrilled to team up with Securitize to bring Converge to market,” said Young. “Our combined expertise uniquely positions us to realize this shared vision.”
