Securitize and Ethena Labs, two companies that work in close collaboration with the Blackrock Buidl money market, have created a block chain compatible with Ethereum called Converge, designed to house tokenized assets and provide institutional investors with the innovation of decentralized financing (DEFI).
Ethena, which offers a USDE token that carries the yield, as well as a USDTB stablecoin backed by Buidl, will migrate its ecosystem definitely of $ 6 billion to converge, while Securitize, the Blackrock’s Token Buidl transfer agent, will carry its set of a set of real world issues (RWAS de Newenized newly.
Since the first days of Defi, there has been a concerted effort to expand beyond cryptocurrencies and bring traditional assets to the chain as a guarantee. Today, traditional financial companies cry out for entering the tokenization career, so it makes sense that companies such as Securitize and Ethhena believe an institutional path for Defi.
“Tokenization, per se, is only putting its values in a different accounting book, and produces savings and cost efficiencies, but not necessarily leads to anything significantly different in terms of what you can do with these assets,” said the CEO of Securitize Carlos Domingo in an interview. “On the other hand, Crypto has been developing very innovative ways of using digital assets. If I could really bring that innovation to the RWA space, it could make it explode. ”
Securitize and Ethena have brought a firm firm of initial partners to converge, including Pendle, Avara (the Aave Labs matrix company), Ethereal, Morpho and Maple Finance. Custody services will be provided by copper, fire blocks, Komainu and Zodia, while interoperability will come through layers, support of worm and oracle holes in Redstone.
Looking to the future to what can be built using the converge block chain, the founder of Ethena, Guy Young, said there will be new products by courtesy of Securitize to stay in the chain, opening new use cases.
“That could be using these things as a guarantee within the loan market made, or it could be the trade of different assets that now do not exist in the chain on a real scale, so they could be actions or whatever, in the future,” said Young in an interview. “We believe that something that has a purpose created for this intersection of Tradfi and Defi will be one of the greatest opportunities in the coming years.”
Converge will be compatible with the Ethereum virtual machine (EVM), which allows you to execute intelligent contracts, DAPP and Ethereum -based tools without modifications. According to a press release.
The native government token of Ethena, ENA, will serve as a refertible asset (through SENA) to converge, ensuring the network with a set of validator permission composed of traditional financial entities and centralized exchanges. Both USDE and USDTB will serve as gas tokens for the network.
Converge is an open public chain with a kind of wrapping to know its client (KYC), which goes beyond the mere white list of wallets, said Domingo.
“Defi today is specifically designed for market participants without permission and anonymous and freely transacable assets,” said Domingo. “To bring that innovation in a context in which the guarantee and the asset that is being committed to the protocol is actually a regulated instrument, there are a lot of things beyond the purely white and KYC listing wallets.”
