Ethena Labs and Securitize have officially unveiled Converge, an Ethereum Virtual Machine (EVM)-compatible Layer-1 (L1) blockchain. Designed to integrate traditional finance (TradFi) with decentralized finance (DeFi), Converge aims to serve as a settlement layer for digital dollars and tokenized assets.
The blockchain is expected to launch its developer testnet in the coming weeks. In addition, the mainnet rollout is planned for Q2 2025.
What is Converge and What to Expect from It?
Converge will operate as an EVM-compatible network, ensuring a seamless development experience for builders. It will integrate key infrastructure providers, including LayerZero, Pyth Network, Wormhole, and RedStone.
The network will utilize ENA, Ethena’s native governance token, for staking. Additionally, USDe and USDtb will function as the network’s native gas tokens.
“Our vision is to provide the first purpose built settlement layer where TradFi will merge with DeFi, centered on USDe & USDtb and secured by ENA,” the announcement read.
Securitize, a leading provider of RWA tokenization, will launch its future tokenized assets on Converge. The company has already issued approximately $2 billion worth of assets on-chain. This initiative represents a significant step in expanding the tokenization of financial products beyond treasury-backed assets and funds. It covers a wider range of securities across multiple asset classes.
Furthermore, on Converge, Ethena will natively issue USDe, USDtb, and iUSDe, exporting these assets into TradFi-compatible formats for institutional adoption. The initiative is set to unlock a massive opportunity by attracting institutional investors to DeFi.
“We believe the biggest theme of this cycle and the coming years is the onboarding of institutional flows of capital. Even after significant growth, DeFi TVL today at $100 billion remains insignificant compared to global capital markets,” the post noted.
By combining Ethena’s DeFi influence with Securitize’s dominance in tokenized securities, Converge aims to fill the existing gap between TradFi and DeFi.
Converge will be built on three core principles. First, it will offer permissionless DeFi access. This will allow users to participate in a decentralized financial ecosystem powered by USDe without the need for KYC.
Second, it will provide permissioned TradFi applications. It will enable traditional financial institutions to interact securely with KYC-compliant parties through iUSDe and USDtb. Lastly, the platform will support permissioned financial products, including various tokenized assets issued by Securitize, facilitating credit leverage, fixed-income products, and equity trading.
These pillars will allow a wider range of users and institutions to adopt blockchain-based financial products.
The Rise of Tokenized Assets and RWA Adoption
The launch of Converge comes amid rapid growth in the RWA market. Recent data shows that the total value of RWAs has doubled over the past year, with the on-chain value reaching $18.8 billion—a 17.81% increase in just the past 30 days.
More than 90,550 asset holders and 117 asset issuers are now active in the space, highlighting its expanding footprint.
“Real-World Assets is the fastest-growing crypto sector, and it’s not slowing down anytime soon,” an analyst commented on X (formerly Twitter).
Further reinforcing the trend, the total value of stablecoins has reached $224.5 billion, reflecting a 1.41% increase over the past month. Notably, Ethena’s USDe has emerged as the fourth-largest stablecoin in this sector.
OKX
YouHodler
eToro
eToro
eToro
eToro
Wirex
MEXC
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
