Ethena Labs and Securitize have announced the launch of Converge, a low-1 blockchain focused on institutional capital flows and integrating tokenized assets with Defi.
According to Ethena Labs ’17 March announcementThe initiative is intended to offer a specially built network for permitted and permissionless financial applications.
Ethena Labs and Securitize Plan to release technical documentation in the coming weeks, followed by a developer test network. The Mainstet launch is planned for the second quarter.
Institutional capital and tokenized assets
Ethena Labs and Securitize See supporting Defi speculation and providing storage and settlement for stablecoins and tokenized assets as two primary applications for blockchain technology.
Although speculative activity remains a core use provision, the companies believe that there is a more substantial opportunity with the institutional acceptance of Tokenized financial products.
Securitize has spent around $ 2 billion on assets in the chain, including BlackRock’s Buuidl Fund and products from Apollo, Hamilton Lane and KKR. The integration of the company with Converge will make the primary issue layer for tokenized assets, which extends its scope further than Treasury products to a wide range of financial instruments.
Ethena Labs will also make his series of stablecoins and revenue-bearing asset-usde, USDTB and IUSde-Meenemen to come together and to facilitate new financial products of institutional quality.
Financial and technical framework
Converge is an Ethereum Virtual Machine (EVM) compatible implementation environment. Institutional validators will secure the network by setting up ENA tokens, while Usde and USDTB will function as native gas tokens, which simplifies transactions.
The blockchain works with three parallel application levels. The first is a permissionless Defi-eco system to support Usde-compatible requests and projects incubated by Ethena Labs.
The second unit is permission, so that traditional financial institutions can communicate with parties that are in accordance with knowledge of the Know-Your-Customer with the help of IUSDE and USDTB.
The last part consists of new financial products that use the tokenized effects of Securitize, making credit, leverage with fixed-income value and stock trading through spot and perpetual swaps.
In addition, the announcement announced protocols that are committed to building on Converge, aimed at Defi solutions for institutional quality. The names include Horizon by Aave Labs, Pendle, Morpho Labs, Maple Finance and EtherealDex.
Converge will also integrate important infrastructure providers, including Layerzero for interoperability of cross-chain, Pyth Network for price Oracles and Wormgat for bridging assets.
Moreover, the blockchain has support from institutional preservators such as Anchorage, Copper, Fireblocks, Komainu and Zijia guardianship. The companies will offer asset management and important guardianship services.
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