This groundbreaking technology will create the connective tissue needed to effectively unite traditional finance and decentralized finance (DeFi). Initially planned for launch in Q2 2025. Converge’s mission is to combine the best aspects of DeFi and institutional finance. Our ultimate aim with this combined effort is to develop a frictionless and intuitive smart financial ecosystem.
Converge will use Ethena’s and Securitize’s infrastructure to connect the dots between institutional funding and decentralized finance protocols seamlessly. This is why the blockchain attempts to optimize transaction throughput while minimizing latency and other transactional overhead. By bundling all these features together, Converge aims to appeal to both DeFi developers and traditional banks and financial institutions.
Technical Specifications and Capabilities
Converge blockchain will implement Arbitrum sequencer technology. Racer Stylus’ upgrade for its chain will be turned on as well. This flexibility means developers can write and deploy smart contracts in multiple languages including, but not limited to, Solidity, Rust, C and C++. This versatility helps encourage development of high speed, efficient applications on top of the network.
The blockchain needs to support both permissionless DeFi applications and permissioned institutional products. This two-pronged approach is designed to meet the needs of researchers and creatives alike. Converge will use Arbitrum and Celestia to have performant, low-throughput experience. This is what makes it ideal for stressful financial apps.
Stablecoin Integration and Mainnet Launch
Ethena’s USDe and USDtb stablecoins will be used for transaction fees (also known as gas fees) on the Converge blockchain. Integrating these payment systems and processes is meant to help users mitigate payment volatility and improve their accounting processing. The Converge mainnet launch is expected to take place no later than the end of Q2 2025.
Beyond that, we’re using stablecoins as gas fees to move away from a gas fee structure that is so volatile and unpredictable. This can be especially helpful to more institutional users who need some amount of known, fixed financial planning. The mainnet launch will be one of the biggest milestones in the development of the Converge ecosystem.
Future Implications
The introduction of Converge is an important move in bridging the gap between traditional finance and the fast-paced world of DeFi. Converge is uniquely positioned to leverage the superior assets of each sector. Combined, this integration can open up powerful avenues for creativity and flexibility, improving the speed and efficiency across the financial sector. What’s most notable about this collaboration between Ethena and Securitize is the evident synergy on both sides to connect these two worlds.
With Converge, you’ll learn how to deploy smart contracts in a variety of languages. Its usefulness as both a permissionless and a permissioned platform makes it a transformative technology to support a wide variety of new financial use cases. By integrating stablecoins to pay gas fees, it makes the platform that much more attractive. It provides a more stable and predictable transaction environment for end-users.
