Ethena Labs will launch its RWA-focused blockchain Converge in Q2

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 Securitize

DeFi 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.