Two prominent participants in the tokenization industry, Securitize and Ethena Labs, have introduced Converge, a new Ethereum-compatible blockchain that aims to bridge the gap between traditional finance and decentralized finance (DeFi).
Following the development, there was an approximately 3% increase in the price of the altcoin Ethena (ENA), which is also listed on Binance.
Both firms have been keenly interested in BlackRock’s money market token BUIDL. Ethena, known for its yield-generating USDe token and BUIDL-backed USDtb stablecoin, plans to bring its $6 billion DeFi ecosystem to Converge. Meanwhile, Securitize, which serves as the transfer agent for BlackRock’s BUIDL token, will bring a suite of tokenized real-world assets (RWAs), including the recently issued Apollo loan fund token, to the new blockchain.
The drive to integrate traditional financial assets into blockchain-based ecosystems has gained momentum since the early days of DeFi.
Carlos Domingo, CEO of Securitize, noted that it is important to combine tokenized securities with DeFi innovations. “Tokenization, in and of itself, is putting your securities on a different ledger, which creates cost savings and efficiencies. But it does not necessarily create new opportunities for these assets,” he explained.
*This is not investment advice.
