22

Ethena Labs, the team behind the USDe and USDtb stablecoins, is shifting its $6 billion DeFi ecosystem to Converge, a new Ethereum-compatible blockchain. Built in collaboration with Securitize, Converge aims to bridge traditional finance (TradFi) and decentralized finance (DeFi) by offering compliant settlement and custodial services.

The announcement came on Monday, highlighting Converge’s integration with Ethereum Virtual Machine (EVM) and its built-in know-your-customer (KYC) wrapper. This will allow institutions to access whitelisted investment products from Ethena and Securitize.

Why Is Ethena Labs Moving to Converge?

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

Ethena Labs envisions Converge as the first settlement layer where TradFi meets DeFi, with a core focus on:

1. Settlement for DeFi speculation – supporting spot and leveraged trading.
2. Storage and settlement for stablecoins & tokenized assets – enhancing liquidity and efficiency.

To ensure robust security, Ethena Labs has partnered with leading custodians, including Copper, Fireblocks, Komainu, and Zodia. Additionally, major DeFi protocols like Aave, Ethereal, Maple Finance, Morpho, and Pendle will serve as launch partners.

How Will Converge Support Tokenized Assets?

Securitize, which has issued over $2 billion in on-chain securities, will use Converge as the issuance layer for both existing and future tokenized assets. This includes:

• BlackRock’s BUIDL Fund, now exceeding $1 billion in AUM.
• Funds from Apollo, Hamilton Lane, and KKR.
• New permissioned products, such as leveraged credit, single-name equities, and perpetual swaps.

According to Ethena founder Guy Young, “A whole world of fixed-income products is coming on-chain.”

When Will Converge Launch?

Converge is set to go live in Q2 2025 and will operate with a dual-structure approach:

• Permissionless access for standard DeFi users.
• A permissioned application layer for institutional investors using products like iUSDe, USDtb, and Securitize’s fixed-income securities.

The blockchain will be secured by validators staking Ethena’s ENA token, ensuring network stability and security.

As institutional demand for tokenized assets grows, Ethena Labs’ migration to Converge marks a major step in bridging DeFi and traditional finance.