Ethena, Securitize Unite to Launch "Converge," a Blockchain Bridging TradFi, DeFi

Ethena Labs, the protocol behind the USDe stablecoin, and Securitize, a market leader in tokenized assets, have announced a partnership to launch "Converge," a new blockchain network designed to serve as a settlement layer for both traditional finance (TradFi) and decentralized finance (DeFi).

The initiative aims to create a unified environment where institutional capital can seamlessly interact with crypto-native products, leveraging Ethena's USDe and USDtb stablecoins and secured by the ENA governance token, according to an announcement posted on Ethena's X page.

"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," Ethena said.

According to Ethena, the blockchain will cater to two core use cases: "(i) Settlement for permissionless spot and leveraged DeFi speculation" and "(ii) Storage and settlement for stablecoins and tokenized assets." While acknowledging the importance of the speculation use case in crypto, Ethena said it sees "a less competitive and much larger opportunity to win the second category over the next decade."

The partnership between Ethena and Securitize is positioned as a unique advantage in capturing this opportunity. Ethena emphasized the significant potential of onboarding institutional capital, noting that "Even after significant growth, DeFi TVL today at $100 billion remains insignificant compared to global capital markets." The lack of infrastructure specifically designed for major institutional capital flows into crypto-native products is a key challenge that Converge aims to address.

Securitize, a leader in the tokenization space, having issued approximately $2 billion in on-chain securities, including products from Blackrock, Apollo, Hamilton Lane, and KKR, will play a crucial role, Ethena announced, expanding beyond tokenized treasuries to encompass "all forms of securities across asset classes." This builds upon their existing relationship, where Securitize partnered with Ethena for USDtb, a stablecoin backed by Blackrock's BUIDL.

Ethena will bring its core product suite, including USDe, USDtb, and iUSDe, to be issued natively on Converge. These crypto-native assets will be adapted for TradFi in formats that traditional institutions can underwrite and interact with, potentially bringing billions in new capital onto the blockchain. Ethena highlighted its current influence in DeFi, stating it is "one of the most influential onchain protocols, with integrations across all major DeFi protocols and the majority of centralized trading venues."

Converge will support both permissionless DeFi applications and permissioned offerings for institutional users within the same blockspace. Several prominent protocols have already committed to building on Converge to facilitate institutional-grade DeFi products, including.

• Horizon by Aave Labs: Focusing on bridging TradFi and DeFi with markets for Securitize tokenized assets, including Ethena's institutional iUSDe.
• Pendle Finance Institutional: Providing rate speculation infrastructure for assets like iUSDe.
• Morpho Labs: Offering modular money markets for Ethena and Securitize assets.
• Maple Finance / Syrup Finance: Developing verifiable on-chain institutional yield and credit products built on USDe and RWAs.
• Ethereal DEX: A high-performance derivatives and spot trading platform built for Ethena liquidity with USDe collateral.

Converge will be secured by a permissioned set of institutional validators who will need to stake ENA. USDe and USDtb will serve as the network's native gas tokens, aiming to lower transaction friction.

Major infrastructure providers and developer tooling will be available from launch, including LayerZero for cross-chain interoperability, Pyth Network, Wormhole, and RedStone for oracle services, and institutional-grade custodians like Anchorage, Copper, Fireblocks, Komainu, and Zodia Custody.

The mainnet launch for Converge is scheduled for Q2 of this year. Ethena and Securitize are inviting builders interested in onboarding institutional flows to crypto and exporting crypto primitives to traditional finance to explore the platform. A developer testnet is expected to follow shortly after more technical details and developer documentation are released in the coming weeks.