Ethena & Securitize Unveil “Converge”: A Game-Changing Blockchain Bridging TradFi & DeFi

Sean Williams
Ethena Labs

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Ethena Labs, the team behind the USDe stablecoin, has joined forces with Securitize, a leader in tokenized assets, to launch “Converge”—a blockchain network designed to bridge traditional finance (TradFi) with decentralized finance (DeFi). This new settlement layer aims to facilitate seamless interaction between institutional capital and crypto-native products.

According to an announcement on Ethena’s X page, Converge will leverage Ethena’s USDe and USDtb stablecoins, with security provided by the ENA governance token. Ethena described the initiative as “the first purpose-built settlement layer where TradFi merges with DeFi,” creating an efficient and scalable infrastructure for institutional capital flows.

A Dual-Use Blockchain for DeFi and Tokenized Assets

Converge is designed for two primary applications:

  1. DeFi Speculation – Enabling permissionless spot and leveraged trading.
  2. Stablecoin and Tokenized Asset Settlement – Providing an infrastructure for secure storage and settlement of digital assets.

While DeFi speculation is a key driver of crypto adoption, Ethena sees greater long-term potential in tokenized asset settlement, citing the relatively small size of DeFi’s total value locked (TVL) at $100 billion compared to the global capital markets.

Institutional Adoption and Infrastructure Expansion

The partnership with Securitize positions Converge as a prime destination for institutional players. Securitize has already issued approximately $2 billion in on-chain securities, working with major firms like Blackrock, Apollo, and KKR. This collaboration extends beyond tokenized treasuries to encompass all asset classes, increasing Converge’s institutional appeal.

Ethena will deploy its full suite of products—including USDe, USDtb, and iUSDe—on Converge, adapting these crypto-native assets for institutional use. The platform will support both permissionless DeFi applications and permissioned offerings for institutions, ensuring broad accessibility.

Key Partnerships and Mainnet Launch

Prominent protocols have committed to building on Converge, including:

  • Horizon by Aave Labs – Facilitating TradFi-DeFi bridges with tokenized asset markets.
  • Pendle Finance Institutional – Supporting rate speculation for assets like iUSDe.
  • Morpho Labs – Developing modular money markets for Ethena and Securitize assets.
  • Maple Finance & Syrup Finance – Creating on-chain institutional yield and credit products.
  • Ethereal DEX – Launching a high-performance trading platform utilizing USDe liquidity.

Secured by a permissioned set of institutional validators staking ENA, Converge will use USDe and USDtb as native gas tokens, reducing transaction friction. Infrastructure providers like LayerZero, Pyth Network, and Wormhole will enhance interoperability, while custodians such as Anchorage, Copper, and Fireblocks will ensure institutional-grade security.

Also Read: Ethena (ENA) Faces Key Resistance at $0.5 – Will a Breakout or Rejection Follow?

With its mainnet launch scheduled for Q2, Converge invites developers and institutions to explore the new frontier of blockchain-based settlement.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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