Ethena Labs and Securitize have introduced Converge, a brand new Ethereum-compatible blockchain that may use stablecoins as an alternative of native crypto property for transaction charges.
The brand new chain seeks to turn out to be the “first purpose-built settlement layer the place TradFi will merge with DeFi, centered on USDe & USDtb and secured by ENA,” Ethena claimed Monday.
Converge will assist guarantee “compliant entry to on-chain monetary markets,” Securitize stated in a separate assertion.
Scheduled to launch within the second quarter of this 12 months, the brand new chain will enable customers to pay fuel charges with USDe and USDtb, the dollar-pegged stablecoins from Ethena Labs.
However this isn’t the primary time that the concept of utilizing stablecoins for fuel charges and settlement was executed.
Whereas Lens Chain (utilizing Aave’s GHO) and Hela Chain (utilizing its personal HLUSD) have carried out stablecoins as fuel tokens, Converge represents the primary try and scale this mannequin for institutional finance.
Extra so, the initiative comes amid elevated institutional curiosity in decentralized finance and tokenized property, even whereas some gamers stay hesitant to undertake programs with unstable price buildings.
Converge will function the issuance layer for Securitize’s $2 billion in tokenized merchandise, together with BlackRock’s BUIDL fund, which just lately crossed $1 billion in property underneath administration.
The brand new blockchain will function with three parallel tiers: a permissionless DeFi ecosystem, permissioned purposes for KYC-compliant interactions, and new monetary merchandise constructed on Securitize’s tokenized securities.
Converge will function the issuance layer for Securitize’s $2 billion in tokenized merchandise, together with BlackRock’s BUIDL fund, which just lately crossed $1 billion in property underneath administration.
The brand new blockchain will function with three parallel tiers: a permissionless DeFi ecosystem, permissioned purposes for KYC-compliant interactions, and new monetary merchandise constructed on Securitize’s tokenization portfolio.
Converge’s community might be secured by validators staking Ethena’s ENA token whereas sustaining dollar-denominated transaction prices.
The chain is trying to “onboard institutional flows to DeFi,” with “varied asset lessons” slated for tokenization by means of Securitize, Tsun Ngai Lee, CEO of Pendle, informed Decrypt.
Up to now, 5 main DeFi protocols have dedicated to construct on Converge, with Aave Labs’ Horizon, Morpho Labs, Maple Finance, and EtherealDEX signing on alongside Pendle.
Institutional custody suppliers Anchorage, Copper, Fireblocks, Komainu, and Zodia will supply asset administration providers.
Converge may even be interoperable by means of LayerZero and Wormhole, with oracle assist coming from RedStone and Pyth.
Edited by Sebastian Sinclair
Editor’s notice: Provides feedback from Pendle’s CEO
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