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Securitize and Ethena have announced Converge, an EVM blockchain focused on supporting and advancing both DeFi and tokenized assets.

TLDR

Converge aims to build products and apps for institutional investors, granting access to DeFi. Securitize plans to issue both future and existing tokenized assets on this blockchain.

Partners

Notable partners include:
– Maple
– Morpho
– Pendle
– Aave Labs’ Horizon

Custodial support comes from Copper, Fireblocks, and Komainu.

Launch Timeline

Converge is set to launch within three months, according to Securitize CEO Carlos Domingo, with updates every two weeks leading to launch. While the testnet isn’t live yet, prototypes are in development.

Collaboration Origin

Domingo shared that the Ethena team approached Securitize while raising $100 million for its own chain, believing institutional DeFi and real-world assets (RWAs) could fill a gap in the market.

Criticism and Clarification

Despite some criticism surrounding Converge, Domingo clarified it’s not a private blockchain, suggesting they are building something more than just a database.

He emphasized connectivity among multiple chains, mentioning Wormhole for facilitating cross-chain operations. According to Domingo, while Ethereum remains a core platform, there are challenges related to flexibility, transaction costs, and time of finality.

Institutional Interest

Institutions seek exposure, and Securitize aims to continue supporting other chains. Domingo believes the stagnation in DeFi growth since 2021 is a barrier to a full bull market, noting that real institutional adoption is crucial for progress.

Conclusion

Domingo expresses cautious optimism about Converge’s potential to break down barriers in DeFi and stimulate institutional adoption, suggesting a more bullish outlook if successful.