
Ethena Labs and Securitize have announced Converge, a new Ethereum-compatible blockchain that will use stablecoins instead of native crypto assets for transaction fees.
The new chain seeks to become the “first purpose-built settlement layer where TradFi will merge with DeFi, centered on USDe & USDtb and secured by ENA,” Ethena claimed Monday.
Converge will help ensure “compliant access to on-chain financial markets,” Securitize said in a separate statement.
Scheduled to launch in the second quarter of this year, the new chain will allow users to pay gas fees with USDe and USDtb, the dollar-pegged stablecoins from Ethena Labs.
But this is not the first time that the idea of using stablecoins for gas fees and settlement was done.
While Lens Chain (using Aave’s GHO) and Hela Chain (using its own HLUSD) have implemented stablecoins as gas tokens, Converge represents the first attempt to scale this model for institutional finance.
More so, the initiative comes amid increased institutional interest in decentralized finance and tokenized assets, even while some players remain hesitant to adopt systems with volatile fee structures.
Converge will serve as the issuance layer for Securitize’s $2 billion in tokenized products, including BlackRock’s BUIDL fund, which recently crossed $1 billion in assets under management.
The new blockchain will operate with three parallel tiers: a permissionless DeFi ecosystem, permissioned applications for KYC-compliant interactions, and new financial products built on Securitize’s tokenized securities.
Converge’s network will be secured by validators staking Ethena’s ENA token while maintaining dollar-denominated transaction costs.
So far, five major DeFi protocols have committed to build on Converge, including Aave Labs’ Horizon, Pendle, Morpho Labs, Maple Finance, and EtherealDEX. Institutional custody providers Anchorage, Copper, Fireblocks, Komainu, and Zodia will offer asset management services. Converge will also be interoperable through LayerZero and Wormhole, with Oracle support coming from RedStone and Pyth.
Edited by Sebastian Sinclair
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