# Ethena and Securitize Launch ‘Converge’: A New Blockchain Merging TradFi and DeFi
Ethena ($ENA), in collaboration with Securitize, which operates BlackRock’s BUIDL tokenization platform, is set to launch a new blockchain named ‘Converge’. This innovative platform aims to be the first settlement layer where traditional finance (TradFi) and decentralized finance (DeFi) coexist seamlessly.
# Converge Blockchain to Bridge TradFi and DeFi
Built on the Ethereum Virtual Machine (EVM), Converge will cater to both individual and institutional investors by offering a customizable DeFi environment. Ethena plans to transition its financial products to Converge, gradually migrating its $6 billion DeFi ecosystem to the new platform. Securitize, leveraging its experience in tokenizing $2 billion in real-world assets (RWA), will issue both existing and new tokenized assets on Converge.
The early partners of Converge include financial applications and products from Pendle, Aave Labs’ Horizon project, Ethereal, Morpho, and Maple Finance. Furthermore, institutional-grade custody services will be supported by Anchorage, Copper, Fireblocks, Komainu, and Zodia. The platform will also feature interoperability through LayerZero and Wormhole, along with oracle services provided by RedStone and Pyth.
# Ethena’s Vision for Institutional-Grade DeFi and Tokenized Assets
Guy Young, founder of Ethena, emphasized Converge’s potential to meet the market’s explicit demand for a settlement layer dedicated to institutional-grade DeFi and tokenized assets. “The blockchain’s two primary roles are settling speculative trades and storing and settling stablecoins and tokenized assets. The latter opportunity will grow significantly over the next decade,” said Young, highlighting Ethena and Securitize’s ambition to lead in this market.
Carlos Domingo, co-founder and CEO of Securitize, noted the challenges institutions face with DeFi adoption due to regulatory uncertainties and the lack of institutional-grade infrastructure. He said, “Converge will bridge traditional finance and DeFi, combining Ethena’s groundbreaking DeFi technology with Securitize’s RWA tokenization expertise, enabling institutions to actively participate in the on-chain financial market.”
# Bringing Traditional Finance Capital On-Chain
Converge’s EVM compatibility allows for the execution of existing Ethereum-based smart contracts, decentralized applications (dApps), and tools without modifications. Network security will be maintained via sENA, staked from ENA tokens, with validators consisting of institutions and centralized exchanges. Ethena and Securitize have also developed stablecoins USDe and USDtb, which will serve as gas tokens for the network.
Ethena is advancing the on-chain issuance of native assets USDe, USDtb, and iUSDe, further strengthening its connection with traditional finance and directing significant capital flows on-chain. Currently, Ethena is a prominent on-chain protocol integrated into major DeFi protocols and centralized exchanges. Though its USDe-based applications are already successful, there remains substantial potential for developing new financial primitives leveraging this stablecoin.
In the on-chain financial system, the dollar underpins core DeFi primitives such as transactions, lending, derivatives, and leverage. Ethena intends to restructure these dollar-based protocols to provide enhanced economic benefits structurally.
‘Converge’ is scheduled for launch in the second quarter of 2025. For the latest updates on Ethena and Securitize, visit the official website at convergeonchain.xyz.
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
