The crypto project backed by BitMEX founder Arthur Hayes is launching a new blockchain with Securitize, a US company geared towards the tokenization of real-world assets (RWAs).
In a new announcement, Ethena Labs says it will launch a new Ethereum (ETH) Virtual Machine (EVM) blockchain called Converge within the next three months in partnership with Securitize.
The blockchain project will be geared toward both retail and institutional investors.
Ethena and Securitize plan to migrate their existing blockchain products onto the Converge blockchain.
Says Ethena Labs,
“Ethena will focus their institutional product offerings on Converge and seek to migrate their existing DeFi (decentralized finance) ecosystem which currently boasts just under $6 billion in assets. Securitize, which has already minted nearly $2 billion in RWAs across multiple blockchains, will look to issue existing and future tokenized assets on Converge, and continue to facilitate interoperability across its many protocol integrations.”
Says Guy Young, Ethena founder,
“We’re developing Converge to fill a clear gap in the market as the go-to settlement layer for institutional-grade DeFi and tokenized assets. We see two core use cases for blockchains: settlement for speculation, and the storage and settlement of stablecoins and tokenized assets. While the first category is important, we view the second as a much larger opportunity over the next decade.”
Carlos Domingo, Securitize co-founder and CEO, says increasing regulatory clarity around digital assets is opening up opportunities for traditional finance institutions to enter the crypto space.
He says Converge aims to “seamlessly bridge traditional finance with the opportunity of DeFi.”
“By combining Ethena’s innovation in DeFi with Securitize’s leadership in tokenizing real-world assets, Converge sets a new standard for how institutions can confidently engage with on-chain financial markets.”
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