- Ethena Labs and Securitize launch Converge, an EVM blockchain for tokenized assets and institutional DeFi, set to debut in three months.
- The blockchain will host Ethena’s $6B DeFi ecosystem and Securitize’s $2B tokenized assets, enabling cross-chain interoperability for users.
Ethena Labs co-founder Arthur Hayes, has partnered with Securitize, a U.S.-based firm specializing in digitizing real-world assets, to develop a new blockchain.
Named Converge, the Ethereum Virtual Machine (EVM)-compatible network is scheduled to launch within three months. The platform will target both individual and institutional users, aiming to streamline access to decentralized finance (DeFi) tools and tokenized assets.
Converge will serve as a dedicated settlement layer for financial transactions involving crypto representations of physical assets, such as real estate or commodities. Ethena Labs plans to transfer its existing DeFi products, which currently hold close to $6 billion in assets, to the new blockchain.
Securitize, which has already created nearly $2 billion in tokenized assets across multiple networks, will also migrate its operations to Converge. The blockchain will prioritize cross-protocol compatibility, enabling users to move assets between different systems.
Guy Young, founder of Ethena Labs, explained that existing blockchains lack infrastructure tailored to institutional requirements. “Current networks primarily support speculative trading,” he said.
“Converge will instead focus on stable settlement processes for tokenized assets, which we believe will drive broader adoption over the next ten years.”
Carlos Domingo, CEO of Securitize, noted that evolving regulations are making traditional financial firms more open to blockchain solutions. “Clearer guidelines are reducing barriers for institutions,” he stated.
“Converge will act as a bridge, merging the flexibility of DeFi with the compliance standards expected by regulated entities.”
The project aligns with growing interest in applying blockchain technology to traditional finance. Tokenizing assets like stocks or bonds could simplify processes such as ownership transfers and audits while cutting administrative costs. However, experts caution that balancing decentralization with regulatory compliance remains a challenge.
Converge will undergo testing in the coming months, with a full release expected by late 2024. Its success may hinge on attracting institutional users seeking efficient, compliant tools for managing crypto assets.
