Securitize and Ethena Labs, key players in BlackRock’s money market token BUIDL ecosystem, have introduced Converge, an Ethereum-compatible blockchain aimed at institutional investors seeking exposure to decentralized finance (DeFi).
Ethena plans to migrate its $6 billion DeFi ecosystem to Converge, while Securitize will bring tokenized real-world assets (RWAs), including the Apollo credit fund token, to the new chain. The initiative is part of a broader industry push to integrate traditional financial assets into DeFi, offering new avenues for collateralization and trading.
“Tokenization alone offers efficiency, but combining it with DeFi innovations could unlock massive potential,” said Securitize CEO Carlos Domingo.
Converge has secured partnerships with industry leaders such as Aave Labs’ parent company Avara, Pendle, Ethereal, Morpho, and Maple Finance. Custodial support will come from Copper, Fireblocks, Komainu, and Zodia, while interoperability solutions will be powered by LayerZero, Wormhole, and RedStone oracles.
The blockchain will support Ethereum-based smart contracts and applications while maintaining high performance. Ethena’s governance token, ENA, will be stakeable to secure the network, and both USDe and USDtb stablecoins will function as gas tokens.
With a built-in know-your-customer (KYC) layer, Converge aims to balance DeFi’s innovation with the regulatory requirements of institutional finance. “DeFi today is built for permissionless transactions, but regulated assets require more than just wallet whitelisting and KYC,” Domingo noted.
Ethena founder Guy Young sees Converge unlocking new use cases, including tailor-made money markets and on-chain trading of traditional assets like equities. “This intersection of TradFi and DeFi is one of the biggest opportunities in the coming years,” he said.
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