The firm behind Ethena protocol and creator of USDe stablecoin, Ethena Labs has launched a new blockchain called Converge to serve for institutional DeFi products.
This newly unveiled blockchain is an EVM compatible settlement layer, launched in partnership with Securitize – the tokenization firm responsible for launching BUIDL fund for BlackRock.
As per Ethena Lab’s official announcement, the vision for Converge is to provide a purpose built settlement layer where TradFi will merge with DeFi, centered on stablecoins USDe & USDtb. The protocol primarily seeks use of Converge for settlement for spot and leveraged DeFi trading and storage for tokenizing real world assets (RWA).
“While the speculation use case has and will continue to play an important role in crypto, we see a less competitive and much larger opportunity to win the second category over the next decade,” said Ethena Labs.
The duo believes that institutional DeFi is a huge and upcoming trend in finance markets and their newly launched blockchain is tailored to fit the need for required infrastructure. “Ethena and Securitize are uniquely positioned to capture this opportunity together,” they said.
Securitize is a leading platform in tokenized products with the firm having issued over $2 billion of assets across a wide range of on-chain securities, including Blackrock’s BUIDL and funds from Apollo, Hamilton Lane, and KKR. it will now use Converge to issue tokenized funds and assets across the wide finance market.
Ethena Labs claim that 5 major DeFi protocols have already supported Converge by deploying their institutional grade DeFi products on the chain, which includes Horizon by Aave Labs, Pendle Finance, Morpho Labs, Maple Finance and Ethereal DEX.
Also Read: Standard Chartered Cuts 2025 Ethereum Price Target to $4,000
