By Key Points
- Ethena Labs and Securitize Unveil Converge Blockchain
- ENA token will power staking, while USDe and USDtb serve as gas tokens
- Securitize will tokenize various assets, expanding beyond treasury-backed securities
- Developer testnet launching soon, with a mainnet launch expected in Q2 2025
Ethena Labs and Securitize have introduced Converge, an Ethereum Virtual Machine (EVM)-compatible Layer-1 blockchain designed to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi). With a focus on tokenized assets and digital dollars, Converge aims to serve as a seamless settlement layer for both institutional and retail financial transactions.
The network is set to roll out a developer testnet in the coming weeks, followed by a mainnet launch in Q2 2025. By leveraging ENA, USDe, and USDtb, Converge will create an efficient environment for staking, gas fees, and financial transactions.
Introducing @convergeonchain: The settlement network for traditional finance and digital dollars, powered by @ethena_labs and @Securitize
Our vision is to provide the first purpose built settlement layer where TradFi will merge with DeFi, centered on USDe & USDtb and secured by… https://t.co/BdOMMflqNl pic.twitter.com/sYxS6p9T8W
— Ethena Labs (@ethena_labs) March 17, 2025
Backed by major blockchain infrastructure providers like LayerZero, Wormhole, RedStone, and Pyth Network, Converge promises a scalable and developer-friendly ecosystem. Ethena’s native governance token, ENA, will be used for staking and securing the network, while USDe and USDtb will serve as the network’s gas tokens.
Securitize, a leader in real-world asset (RWA) tokenization, will issue a wide range of tokenized financial products on Converge. The firm has already put $2 billion worth of assets on-chain, and this move represents a significant expansion into new asset classes beyond treasury-backed securities.
According to Ethena, Converge is designed to onboard institutional capital into DeFi, addressing the gap between DeFi’s current total value locked (TVL) of $100 billion and the massive scale of global capital markets.
The Growth of Tokenized Assets and Institutional Adoption
The launch of Converge comes amid a boom in tokenized real-world assets (RWAs). Over the past year, the total on-chain value of RWAs has doubled, reaching $18.8 billion—a 17.81% increase in just the last 30 days.
Real World Assets Sector Growth. Source: RWA.xyz – Techtoken
More than 90,550 asset holders and 117 issuers are now active in the RWA space, signaling increasing institutional interest in blockchain-based financial products.
“Real-world assets are the fastest-growing sector in crypto, and this trend isn’t slowing down,” an analyst remarked on X (formerly Twitter).
Additionally, the total stablecoin market has grown to $224.5 billion, reflecting a 1.41% increase in the past month. Notably, Ethena’s USDe has become the fourth-largest stablecoin in the market, further cementing its role in the ecosystem.
By combining Ethena’s influence in DeFi with Securitize’s expertise in asset tokenization, Converge is positioning itself as a leading blockchain for financial institutions. With permissionless DeFi access, regulated TradFi applications, and tokenized financial products, Converge is set to drive the next phase of blockchain adoption in global finance.
The total RWA value doubled in the past 12 months alone.
Real-World Assets is the fastest growing crypto sector and it’s not slowing down anytime soon. pic.twitter.com/p6JF0lHB40
— The DeFi Investor 🔎 (@TheDeFinvestor) March 17, 2025
How Converge Aligns with the Future of Blockchain Growth
The introduction of Converge aligns with the future growth of Ethereum and the broader blockchain space. As Ethereum continues evolving with scalability upgrades and institutional adoption, Converge’s integration with Ethereum-based assets positions it for long-term success. Read more about Ethereum’s future growth and its impact on the crypto market.
Meanwhile, as DeFi and RWAs gain traction, security threats remain a concern. Recently, the Four Meme Exploit on BNB Chain highlighted vulnerabilities in meme token projects. Converge, with its institutional-grade security features, aims to provide a safer alternative for tokenized assets.
Additionally, institutional participation in crypto is on the rise, as seen in MicroStrategy’s latest Bitcoin acquisition. With major firms betting on digital assets, Converge’s ability to tokenize real-world assets could become a game-changer for institutional adoption.
Finally, the increasing volatility in the crypto market, as seen in the recent $420 million Bitcoin short position, highlights the need for stable and regulated financial products. By merging DeFi stability with TradFi compliance, Converge could emerge as a key player in the next wave of blockchain finance.
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