Ethena and Securitize Reveal Roadmap for Converge Institutional Real-World Asset Tokenization Blockchain

By KMatt | Blogging Crypto | 22 Apr 2025

The speedy world of online finance has seen tokenization of real-world assets (RWAs) at the forefront of transformation, with potential to unlock efficiency and liquidity in otherwise illiquid markets. In a strategic move in this area, Securitize and Ethena Labs have outlined the roadmap to construct Converge, a new blockchain network designed specifically to satisfy the institutional RWA tokenization requirement. From this partnership, the two entities are planning to combine Ethena's decentralized finance (DeFi) protocols with the current regulatory-compliant digital asset securities infrastructure capabilities of Securitize.

Meeting the Institutional Demand

While vision for RWA tokenization is positive, adoption by financial institutions has been sluggish because of regulation, security, and current general-purpose blockchain constraints. Institutions require robust systems in order to enable them to meet advanced legal and regulatory requirements and secure and scalable technology to support financial business. Converge is positioned as a solution developed from the ground up to meet these specific institutional requirements, thereby attempting to bridge the gap between traditional finance (TradFi) and the future digital asset economy.

Converge: A Purpose-Built Infrastructure

Converge is being built as an institution-sized blockchain network – perhaps a Layer 1 or a tailored Layer 2 – tailored to enable the fullest possible extent of lifecycle management of tokenized RWAs. A few of the most significant design aspects are expected to be:

Compliance-by-Design: Fundamental regulatory requirements and identity verification procedures natively integrated into the design of the chain to facilitate compliant processing of transactions and asset management.
Secured-up Security: Combining robust security controls suitable to handle high-value institutional assets.
Performance and Scalability: Protecting the network to enable the throughput and finality requirements of institutional financial activity.
Interoperability: Connecting the gap to communicate with dominant financial infrastructure and the broader DeFi ecosystem.
The Strategic Partnership: Ethena and Securitize Synergy

The collaboration that brings Converge takes advantage of the respective strengths of its foundation partners:

Ethena Labs: The first to bridge DeFi mechanism expertise, yield generation, and stablecoin technology with its award-winning USDe synthetic dollar protocol, Ethena will initiate introducing its stablecoin or alternative DeFi primitive to the Converge platform, providing tokenized RWAs with new liquidity or yield possibility.
Securitize: Securitize is the leader in digital asset securities, and they are an established platform for tokenized security issuance and management according to regulatory needs. Their experience managing transfer agent registration, broker-dealer approval, and Alternative Trading Systems (ATS) provides it with the compliance infrastructure that enables institutional adoption.
This convergence is intended to create a converged ecosystem where assets can be tokenized, regulated, and even used in DeFi applications, all within a secure and regulatory-compliant environment.

Roadmap Highlights and Future Perspective

Actual timelines might differ, but the published roadmap provides an overall sense of the key milestones for Converge development and launch. These will probably be testnet launch, security audits, mainnet launch, and gradual addition of initial assets and partners.

Effective roll-out and uptake of Converge would have far-reaching and lasting consequences:

Faster Institutional Adoption: By offering a compliant, purpose-built platform, Converge can make the hurdle to institutional involvement in the RWA tokenization market lower.
Increased Market Liquidity: By facilitating fractionalization and trading of traditionally illiquid assets like real estate, private equity, or debt.
Facilitating TradFi-DeFi Interoperability: By offering a regulated gateway for institutional capital to interact with decentralized financial protocols more easily.

Conclusion

Securitize and Ethena's Converge initiative is a concentrated and ambitious effort to build infrastructure for the next generation of real-world assets-backed financial innovation. Through the convergence of DeFi and compliant securities tokenization know-how, Converge will provide the specialized, institutional-grade blockchain solution needed to unlock the vast potential of RWA tokenization. Its building will be watched by investors in traditional and decentralized financial markets as a leading indicator of institutional engagement with blockchain technology.