By Lucas James | March 17, 2025
Ethena Labs and Securitize have united their forces to launch Converge which represents their joint venture for creating a new Ethereum-compatible blockchain dedicated to tokenized assets. Deployment of Converge blockchain at the beginning of 2025 will transform institutional involvement in digital assets through its full compliance capabilities and secure approaches which drive mass adoption.
DeFi platform that meets the requirements of institutions is needed
Converge functions as more than an ordinary blockchain solution because it acts as a single connecting platform. Converge serves as a platform built from the Ethereum Virtual Machine (EVM) which ensures seamless connection with existing Ethereum protocols allowing users to access the broader Ethereum ecosystem. Its special feature lies in providing compliant and secure solutions with user-friendly features to handle traditional financial regulation challenges in crypto engagement for institutions.
Ethena Labs plans to transfer its $6 billion DeFi ecosystem to Converge while continuing operations of stablecoins USDe and USDtb. Through its transition towards legacy financial system integration DeFi is becoming more accessible to institutional-level participation while maintaining both security protocols and regulatory requirements.
Ethena explained how the company developed a settlement structure which equally supports operations between DeFi and TradFi systems. The project maintains a secure environment where stablecoins together with tokenized assets can prosper.
Making DeFi Safe for Institutions
The main distinctive element of Converge centers on its regulatory compliance protocol. Through KYC solutions built into its platform and work with trusted custodians including Copper and Fireblocks as well as Komainu and Zodia Converge enables institutional investors to use tokenized assets under compliant conditions.
Converge operates under two different access protocols allowing authorized organizations to handle regulated assets such as iUSDe and USDtb and unregulated protocol users to participate in DeFi activities. The regulatory framework compatibility of these standards gives institutions freedom to access DeFi benefits without breaching rules.
The collaboration between Converge and top industry stakeholders in DeFi continues to grow.
The DeFi cornerstones Aave, Ethereal, Maple Finance, Morpho and Pendle have expressed their support for Converge before its market launch. Support from key DeFi organizations ensures the launch of Converge with multiple innovative DeFi products of high quality which offer users various options when they start using the platform.
Traditional financial asset tokenization specialist Securitize intends to adopt Converge as its basis for new token creation in addition to its current tokenized product development. Securitize has released more than $2 billion worth of on-chain securities through its existing and upcoming tokenized products such as BlackRock and Apollo and KKR offerings which position Converge as the preferred blockchain for tokenized fixed-income and equity swap management.
Ethena founder Guy Young identified an extensive traditional financial market prepared to migrate onto blockchain technology during his interview regarding the finance industry’s transformation.
What’s Next for Converge?
Converge will launch its official blockchain service during the second quarter of 2025 to change how institutions interact with DeFi platforms and tokenized assets. Converge ensures institutions along with DeFi enthusiasts can effortlessly connect to digital assets through a secure platform that provides accessible DeFi services.
Security for the network relies upon validators who maintain the blockchain through ENA token staking on Ethena’s platform.
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