Ethena Labs, Securitize choose Arbitrum and Celestia's DA for Converge blockchain targeting real-world assets

Ethena Labs, issuer of synthetic dollar USDe and the USDtb stablecoin, and tokenization specialist Securitize, revealed key technology decisions for the Converge blockchain, which plans to expand institutional access to DeFi and bring more real-world assets (RWA) onchain.

Converge will use Arbitrum's infrastructure as its execution environment and Celestia’s data availability layer, reducing data storage and transaction costs. Additionally, the chain will feature Conduit’s G2 sequencer to boost transaction throughput and operational efficiency as an Ethereum-compatible network. Sequencers gather and broadcast transactions submitted on scaling solutions back to the main chain.

Notably, Converge is a standalone Layer 1 settlement blockchain with a dedicated sequencer, an architecture typically found in Layer 2s to improve block processing times. "Converge will push the boundaries of what level of throughput is possible on EVM-based networks in collaboration with Arbitrum, Celestia and Conduit,” the team wrote in a Thursday update.

Ethena and Securitize introduced the idea in March, aiming to join the growing crowd of blockchains focused on the fast-growing $21 billion RWA sector and bridge DeFi with traditional finance. Both entities already operate in the tokenization scene.

Ethena’s yield-bearing USDe synthetic dollar has nearly $5 billion in market capitalization following its February 2024 launch. The DeFi protocol also offers a USDtb stablecoin backed by BlackRock’s onchain treasury market fund BUIDL issued by Securitize. Securitize manages roughly $4 billion in tokenized products from Wall Street titans like Apollo, BlackRock and Hamilton Lane.

Gas and security

According to the Converge team, USDe and USDtb stablecoins, which maintain a $1 value per coin, will work as gas tokens to “allow users to account for transaction fees more easily.” Developers may consider alternative assets, such as ether, for gas, depending on market demand.

The network will run the Converge Validator Network (CVN) for network security, which is set to activate after the mainnet launch. Validators within CVN must stake Ethena’s native token, ENA, providing crucial security and governance oversight.

Converge is slated to go live in the second quarter of 2025. Ethena Labs intends to migrate its existing $6 billion suite of DeFi products to Converge following its launch, as previously reported by The Block.