Introduction
Decentralized Finance (DeFi) stands at a critical juncture, and Carlos Domingo, CEO of Securitize, insists that without institutional adoption, its expansion will stall, falling short of its game-changing promise. To tackle this hurdle, Securitize has joined forces with Ethena Labs to unveil Converge, an Ethereum Virtual Machine (EVM)-ready blockchain set to debut within three months. Revealed on March 17, 2025, Converge focuses on institutional investors, blending DeFi with tokenized real-world assets (RWA). Could this forward-thinking effort be the spark to push DeFi into widespread acceptance?
Converge: A Blockchain Tailored for Institutional DeFi
Converge isn’t merely another blockchain contender—it’s a strategic move to pull institutional funds into DeFi. Partnering with Ethena Labs, famed for its stablecoin breakthroughs, Securitize plans to launch existing and new tokenized assets on this platform while developing DeFi apps with elite collaborators like Maple, Morpho, Pendle, and Aave Labs’ Horizon. To win over institutions, top custodians Copper, Fireblocks, and Komainu ensure rock-solid security—a must for major players stepping into this unpredictable space.
Speaking to me, Domingo confirmed Converge will go live within 90 days, with bi-weekly progress reports until launch. The testnet isn’t active yet, but early builds are underway. “We’re moving fast,” he stressed, highlighting the pressing need as institutional adoption accelerates in 2025. This swift pace mirrors a larger trend: DeFi must move past its retail base to tap into the resources and trust of traditional finance.
Why Institutional Adoption Is Essential
Domingo is firm: DeFi has plateaued since its 2021 high, known as the DeFi summer. “Growth is stuck without institutional adoption,” he told me plainly. Without support from banks, hedge funds, and asset managers, DeFi could remain a sidelined trial rather than a pillar of global finance.
The numbers tell a stark story. By March 2025, DeFi’s total value locked (TVL) sits near $100 billion globally—notable, but far below its once-expected boom. Volatility, vague regulations, and scarce liquidity have slowed broader uptake. Domingo views institutional participation as the vital fix, bringing capital, regulatory clarity, and credibility to link decentralized advancements with conventional systems. Converge fills this gap intentionally, offering stability and scale to cautious institutional players leery of DeFi’s ups and downs.
The Birth of Converge
Converge sprouted when Ethena Labs pitched Securitize during a $100 million raise for its own blockchain. “They saw the synergy in pairing institutional DeFi with our RWAs,” Domingo noted. Securitize’s skill in tokenizing assets merged with Ethena’s DeFi expertise to craft a blockchain serving both realms.
Not all are sold, though. Skeptics like David Hoffman wonder if Converge might tilt toward a private blockchain. Domingo countered sharply: “It’s not private—we’re not just making a database.” He explained that a private chain could use simpler tools, but Converge is built for a multichain future, designed to work across diverse networks with tools like Wormhole for cross-chain links. “Ethereum is great—our top assets are there—but it’s sluggish, pricey, and lacks quick finality,” he added, positioning Converge as a flexible alternative.
A Stellar Partnership Network
Converge draws strength from its allies. Maple and Morpho offer cutting-edge lending systems, Pendle provides yield-trading options, and Aave Labs’ Horizon adds advanced DeFi features. Security-wise, Fireblocks, Copper, and Komainu tackle institutional worries about breaches—a lingering DeFi issue. Domingo teased plans to support other blockchains, giving institutions multichain options to spread their investments.
The rewards could be huge. Domingo once estimated that fusing RWAs with DeFi could multiply the market tenfold, possibly driving tokenized assets past $50 billion in 18 months. With institutional support, this bold vision feels within reach—think banks lending against tokenized real estate or hedge funds trading yields on-chain, reshaping DeFi’s scale.
Can Converge Break DeFi’s Limits?
DeFi grapples with familiar foes: price volatility, regulatory fog, and thin liquidity pools. Converge confronts these with a blockchain crafted for dependability and growth. But talk is cheap—execution matters. Crypto is full of overhyped flops, so doubt is fair.
Yet, timing may favor it. With U.S. stablecoin laws nearing and tokenized assets rising, institutional curiosity is climbing. Moves like BlackRock’s tokenized funds and PayPal’s stablecoin efforts hint at a blockchain-traditional finance blend. If Converge launches as planned and lands big adopters, it could topple a major DeFi obstacle. “True institutional adoption would be a massive win,” Domingo beamed. I’ll wait for testnet results and updates, but Converge is a gutsy jump for DeFi’s future—worth tracking as it aims to lift DeFi off its current ledge.