DeFi protocol Ethena and tokenization firm Securitize are preparing to launch Converge, a real-world asset (RWA) focused Ethereum-compatible blockchain, in Q2 2025.
The network leverages Arbitrum and Celestia to support institutional-grade asset tokenization and high-throughput decentralized finance.
Background
- Ethena Labs and Securitize have announced further technical details of their upcoming blockchain project, Converge, which is slated for mainnet launch in the second quarter of 2025.
- The initiative seeks to bridge real-world asset tokenization and decentralized finance (DeFi) by leveraging Arbitrum’s Layer 2 technology alongside Celestia’s modular data availability network.
- Converge is designed to enable both permissionless and permissioned applications, allowing traditional institutions to tokenize assets in compliance with financial regulations while providing open access for DeFi developers.
- The blockchain will allow users to pay gas fees in Ethena’s stablecoins, USDe and USDtb, which are pegged to the U.S. dollar.
Why should you pay attention?
- The collaboration between Ethena and Securitize reflects a growing trend of merging institutional finance with decentralized systems.
- Ethena’s synthetic stablecoin USDe already commands over $5 billion in total value, while Securitize has tokenized nearly $4 billion in assets on behalf of financial giants like Apollo and BlackRock.
- The upcoming Converge chain aims to build infrastructure that can onboard tens of billions in capital on-chain, utilizing advanced technology to accommodate the throughput and security demands of both retail and institutional participants.
Who said what?
- In an interview with blocmates, Conor Ryder, Head of Research at Ethena Labs, described the initiative as a necessary step for institutional onboarding:
“Even if you look at the crypto market cap it has plateaued and hasn’t reached new highs every cycle like it used to and we just think this probably leads us on to Converge… why not us be the ones that build that infrastructure?”
- Ryder also emphasized the strategic value of teaming up with Securitize, noting their experience in asset tokenization for traditional finance:
“We partnered with Securitize who has experience in tokenizing assets for TradFi and they have the network and clientele.”
Zooming out
- The Converge blockchain enters a competitive space as financial institutions increasingly explore blockchain integration.
- Its technical stack, powered by Arbitrum for execution and Celestia for data availability, demonstrates the growing appeal of modular blockchain infrastructure.
- With a custom sequencer and the Converge Validator Network (CVN) to enhance governance and security, the network positions itself as a scalable and compliant solution for bringing real-world assets to decentralized platforms.
- If successful, Converge could become a model for how permissioned and permissionless finance coexist, enabling both regulatory oversight and open innovation.
- As traditional finance firms search for secure, efficient blockchain infrastructure to tokenize assets like treasury bills, money market funds, or private equity, platforms like Converge could offer the hybrid environment necessary to facilitate mass adoption.
