Ethena Labs will launch its RWA-focused blockchain Converge in Q2
Ethena Labs unveiled its new Layer-1 blockchain Converge, set to go live in Q2, in partnership with Securitize.Converge is an EVM-compatible blockchain designed specifically for tokenized real-world assets (RWA) and digital dollars.Ethena's stablecoins, USDe and USDtb will function as gas tokens for performing transactions on Converge.Ethena Labs – in partnership with Securitize – unveiled its Layer-1 blockchain Converge, an EVM-compatible network designed to bridge traditional finance (TradFi) and decentralized finance (DeFi) with a focus on tokenized real-world assets (RWA) and stablecoins.Ethena Labs prepares to launch RWA-focused blockchain in partnership with SecuritizeDeFi protocol Ethena plans to launch Converge, a Layer-1 blockchain built — using technology from data availability layer Celestia and Layer-2 (L2) solution Arbitrum — in partnership with RWA platform Securitize.Converge will focus on bridging the gap between RWAs and DeFi by prioritizing faster transactions and user experience. The Ethena team also claims that Converge will be EVM-compatible, allowing it to support DeFi applications in the Ethereum ecosystem.Ethena's stablecoins, USDe and USDtb, will function as gas tokens for performing transactions on Converge. Ethena also plans to leverage the stablecoins to power seamless interoperability for on/off ramping RWAs into stables and across chains.The team seeks to allow users to onboard assets from other chains, including Ethereum, Solana and Arbitrum, without a break in liquidity. The blockchain will utilize a Converge Validator Network (CVN), which will act as its foundational layer of security."At the core of its functionality, the CVN will act as a security council with discretionary authority to intervene in scenarios that threaten user funds or network integrity," Ethena Labs' team stated in a post.Validators will likewise stake Ethena's governance token, ENA, to maintain the security of the blockchain through staking. Operators and delegating users will be eligible to earn a portion of protocol transaction fees and potential additional rewards from the Converge ecosystem.The CVN will be rolled out after the launch of the Converge mainnet and will include key information such as the criteria for selecting validators and operational procedures. Converge mainnet will go live in Q2, while a developer testnet will launch in a few weeks."The Converge developer testnet and technical documentation will be rolled out in the coming weeks, first to infrastructure partners, then later to application developers," the team added.Developments around Converge follow increased interest among TradFi institutions seeking to bring their assets on-chain. This involves using DeFi protocols to launch real-world assets on-chain, such as tokenized bonds and stablecoins.Converge targets products like BlackRock's money market fund BUIDL, which launched in 2024 and has grown to $2.3 billion in market capitalization.Ethena (ENA) is up 2%, trading above $0.278 following the announcement of Converge. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.