Securitize and Ethena Labs, the two companies work closely with BlackRock’s money market tendercreated an Ethereum-compatible blockchain called Converge, designed to accommodate token assets and provide institutional investors with innovations in decentralized financing (DEFI).
EdenProvides yielding USD tokens and USDTB Stablecoin powered by Buidl, to migrate $6 billion The Defi ecosystem will converge, and the transfer agent securitization of Blackrock Buidl tokens will bring a suite of recently issued token Real World Assets (RWAS) Apollo Credit Fund Tokensto the new chain.
From the early stage defi A consistent effort has been made to expand beyond cryptocurrencies and to use traditional assets as collateral. Today, traditional financial companies are clamoring to participate in tokenization competitions, so it makes sense for companies like Securities and Ethena to create an institutionally friendly path to Defi.
“Tokenization itself is just putting your securities on different ledgers, which can save costs and efficiency, but that doesn’t necessarily lead to significantly different things that these assets can do,” Secuitize CEO CARLOS DOMINGO said in an interview. “On the other hand, cryptocurrencies have been developing very novel ways to use digital assets. If you can actually bring this Defi Innovation back to the RWA space, it can explode.”
Securitize and Ethena bring a strong initial partner company, including Pendle, Avara (parent company of Aave Labs), Ethereal, Morpho and Maple Finance. Copper, Fireblocks, Komainu and Zodia will offer hosting services, while interoperability will be provided through Redstone’s LoyeZero, Worm and Oracle support.
Looking ahead to what can be built using the Converge blockchain, Ethena founder Young said there will be new products provided by securitizations that can be stored on the chain and new use cases are opened.
“This could use these things as collateral in a tailored money market, or maybe trading different assets that are not on-chain now and therefore could be stocks or any other assets,” Young said in an interview. “We believe that the purpose of building for the intersection of Tradfi and Defi is one of the biggest opportunities in the coming years.”
Converge will be compatible with Ethereum Virtual Machine (EVM), allowing it to run Ethereum-based smart contracts, DAPPs and tools without modification. According to the press release, it will have performance consistent with industry-leading blockchains.
Ethena’s Aboriginal Governance Token ENA will serve as a convergence of disposable assets (via Sena), ensuring the network’s assurance through a set of licensing verifiers composed of traditional financial entities and centralized communications. Both USDE and USDTB will serve as natural gas tokens for the network.
Converge is a public open chain with a knowledge customer (KYC) wrapper that is more than just the white of the wallet, Domingo said.
“Today’s Defi is designed specifically for licensed and anonymous market participants and freely tradeable assets,” Domingo said. “To bring this innovation into the situation where collateral and assets in the agreement you promised are actually a regulated instrument, there is a lot more to do besides the pure white list wallet and KYC.”
