Securitize and Ethena Labs, two companies that work closely with Blackrock’s money market stoken Buidl, have created an Ethereum-compatible Blockchain called Converge, designed to house tokenized assets and provide institutional investors the innovation of decentralized funding (DEFI).

Ethena, which offers a yield of the USDE token as well as a buidl-backed USDTB stableCoin, will migrate its $ 6 billion Dollars Defi ecosystem for converger, while Securitize, the transfer agent for Blackrocks Buidl token, will bring his suite of tokenized real-world use (Rwas) Apollo Credit Fund, for the new chain.

From the early days of Defi, there has been an overall effort to expand beyond cryptocurrencies and bring traditional assets on chain as security. Today, traditional financial companies are struggling to get into the tokenization race, so it makes sense for companies such as Securitize and Ethena to create an institutional-friendly path to defi.

“Tokenization in itself is just putting your securities on another headbox, and it produces cost savings and efficiencies, but it doesn’t necessarily lead to something significantly different about what you can do with these assets,” Securitize CEO Carlos Domingo said in an interview. “On the other hand, Crypto has developed very new ways to use digital assets. If you could actually bring that defi innovation back in the RWA room, it could make it explode. “

Securitize and Ethhena have brought a robust company with initial partners for convergering, including commute, Avara (the parent company of Aave Labs), Ethereal, Morpho and Maple Finance. Detention services will be provided by copper, fire blocks, Komainu and Zodia, while interoperability comes via Layerzero, Wormhole and Oracle Support from Redstone.

Looking forward to what can be built using converged blockchain, Ethena founder Guy Young said there will be new products with the permission of Securitize to house in the chain, which opens new use cases.

“It may use these things as security in tailor -made money markets, or it could trade with various assets that are not found on a chain now on a real scale, so it can be stocks or whatever, in the future,” Young said in an interview. “We believe there is a purpose built for this intersection between Tradfi and Defi will be one of the greatest opportunities in the next few years.”

Converge will be compatible with Ethereum Virtual Machine (EVM), enabling it to run Ethereum-based smart contracts, DAPPs and tools without change. It will boast of performance that is in line with industry -leading blockchains, according to a press release.

Ethhena’s original steering token, ENA, will act as a poor asset (via Sena) for convergering, securing the network with a permitted validator set composed of traditional financing units and centralized exchanges. Both USDE and USDTB will act as gas themes for the network.

Converge is a public open chain with a kind of well-known-your-customer’s (KYC) wrapping that goes beyond just whitewashing of wallets, Domingo said.

“Defi Today is designed specifically for permitted and anonymous market participants and could freely trade assets,” Domingo said. “To bring this innovation into a context where security and active, you pledge into the protocol, is actually a regulated instrument that is a lot of things in addition to pure white listing wallets and KYC.”