Revolutionizing Institutional DeFi: Securitize & Ethena Unveil Converge Blockchain

Tokenization Specialists Securitize and Ethena Unveil Institutional DeFi Blockchain

According to CoinDesk, Securitize and Ethena Labs have launched a new Ethereum-compatible blockchain named Converge, aimed at institutional investors. This blockchain is designed to integrate tokenized real-world assets with decentralized finance (DeFi). Ethena plans to migrate its $6 billion DeFi ecosystem to Converge, while Securitize will bring tokenized assets like the Apollo credit fund token to the platform. The Converge blockchain will also feature partnerships with entities such as Pendle, Avara, and Maple Finance, and will utilize Ethena’s governance token, ENA, for network security. The platform is expected to open new use cases, including trading assets like equities at scale.

Converge is compatible with the Ethereum Virtual Machine (EVM), allowing it to run Ethereum-based smart contracts and tools without modification. Custodial services will be provided by Copper, Fireblocks, and others, while interoperability will be supported by LayerZero and Wormhole. Securitize CEO Carlos Domingo emphasized the potential of combining DeFi innovation with regulated real-world assets to create significant opportunities in the financial sector.

Blockchain Drives Tokenized Property Ownership

Cointelegraph reports that blockchain technology is revolutionizing the real estate market, which is projected to reach $654 trillion by 2025. Tokenization of real-world assets (RWA) in real estate allows property ownership to be converted into digital tokens, enabling fractional ownership and enhancing liquidity. This innovation addresses traditional challenges such as high capital requirements and illiquidity in the property market. However, regulatory compliance and data authenticity remain key hurdles for broader adoption.

Mantra, a blockchain built on the Cosmos SDK, is leading efforts in real estate tokenization by providing infrastructure and compliance solutions. The platform simplifies the tokenization process through features like on-chain KYC verification and supports seamless asset transfers via the Inter Blockchain Communication (IBC) Protocol. Mantra has also secured a license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant step in regulatory compliance for blockchain-based real estate solutions.

Standard Chartered Lowers Ethereum Price Target

Benzinga reports that Standard Chartered has revised its Ethereum price target to $4,000 by 2025, down from a previous estimate of $10,000. The bank attributes this adjustment to the rise of Layer-2 blockchains like Base, developed by Coinbase, which extract significant value from Ethereum’s ecosystem. Base reportedly retains 80% of its fee revenue, redirecting it to Coinbase, which has led to an estimated $50 billion reduction in Ethereum’s market capitalization.

The report suggests that Ethereum’s upgrades, such as the 2022 merge to proof-of-stake and the upcoming Dencun update, have commoditized the network, enabling Layer-2 solutions to dominate revenue generation. Standard Chartered recommends taxing the profits of Layer-2 blockchains to mitigate their impact on Ethereum’s ecosystem and market value.

Bitget Featured in Blockchain and STOs Book

Morningstar highlights that Bitget, a leading cryptocurrency exchange, has been featured in the fourth edition of "The STO Financial Revolution" by UCLA professor Alex Nascimento. The book explores blockchain and Web3 technologies, offering insights into compliant fundraising and real-world applications. Bitget’s case study in the book focuses on its role in advancing blockchain adoption through secure and practical solutions.

The book, adopted by academic institutions like UCLA, emphasizes the importance of integrating blockchain education into global frameworks. Bitget’s inclusion underscores its growing influence in the blockchain sector and its commitment to driving crypto adoption through strategic partnerships and innovative solutions.

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