Introduction
Decentralized Finance (DeFi) stands at a crossroads, and Carlos Domingo, CEO of Securitize, argues that without institutional adoption, its potential will remain untapped. To bridge this gap, Securitize has teamed up with Ethena Labs to launch Converge, an Ethereum Virtual Machine (EVM)-compatible blockchain set to debut within three months from March 17, 2025. Designed for institutional investors, Converge fuses DeFi with tokenized real-world assets (RWA), aiming to thrust DeFi into the mainstream spotlight.
Converge: Tailoring Blockchain for Institutional DeFi
Converge isn’t just another blockchain—it’s a targeted push to draw institutional funds into DeFi. Partnering with Ethena Labs, renowned for its stablecoin advancements, Securitize plans to host existing and new tokenized assets on this platform while building DeFi solutions with heavyweights like Maple, Morpho, Pendle, and Aave Labs’ Horizon. To win over cautious institutions, top custodians Copper, Fireblocks, and Komainu provide robust security—a must-have in this high-stakes arena.
Domingo shared with me that Converge will launch within 90 days, with bi-weekly progress reports leading up to it. Though the testnet is still offline, early versions are in the works. “We’re moving fast,” he stressed, reflecting the urgency as institutional adoption picks up steam in 2025. This pace signals a shift: DeFi must mature beyond retail users to unlock the resources and legitimacy of traditional finance.
Why Institutions Are DeFi’s Missing Piece
Domingo is clear: DeFi growth has stalled since its 2021 boom, often called the DeFi summer. “Without institutional adoption, DeFi won’t scale,” he told me bluntly. Lacking support from banks, hedge funds, and asset managers, DeFi risks remaining a fringe player rather than a global financial force.
The numbers tell the tale. By March 2025, DeFi’s total value locked (TVL) sits at roughly $100 billion globally—solid, but far from its once-hyped trajectory. Volatility, unclear regulations, and thin liquidity have slowed broader uptake. Domingo views institutional engagement as the solution, bringing capital, regulatory clarity, and trust to connect decentralized systems with established finance. Converge steps up to meet this need, blending DeFi’s speed with RWA stability to attract risk-averse giants.
How Converge Came to Be
The idea for Converge sprouted when Ethena Labs pitched Securitize during a $100 million raise for its own chain. “They recognized the value of combining institutional DeFi with our RWAs,” Domingo explained. Securitize’s expertise in tokenization paired with Ethena’s DeFi ingenuity birthed a blockchain to serve both realms.
Skeptics, like David Hoffman, wonder if Converge might veer toward a private model. Domingo pushed back: “It’s not private—we’re not just slapping together a database.” He emphasized that Converge is built for a multichain future, where networks interlink. “Ethereum is great—our key assets are there—but it’s slow, costly, and lacks quick finality,” he noted. Converge offers agility while staying compatible with other ecosystems, a draw for institutions craving versatility.
A Robust Partnership Network
Converge thrives on its collaborators. Maple and Morpho supply sophisticated lending options, Pendle adds yield-trading features, and Aave Labs’ Horizon brings next-level DeFi tools. Security is locked down by Fireblocks, Copper, and Komainu, easing institutional fears of breaches—a lingering DeFi pain point. Domingo teased future support for additional blockchains, giving institutions multichain flexibility to spread their bets.
The upside could be huge. Domingo once predicted that merging RWAs with DeFi could balloon the market tenfold, potentially lifting tokenized assets past $50 billion in 18 months. With institutional muscle, this bold target feels within reach—think banks lending against tokenized property or funds trading yields on-chain.
Will Converge Break DeFi’s Limits?
DeFi grapples with familiar foes: price volatility, regulatory haze, and shallow liquidity. Converge confronts these with a blockchain crafted for dependability and growth. Still, bold claims don’t guarantee success—crypto is full of overhyped flops, so caution is wise.
Yet, the timing feels right. With stablecoin laws on the horizon in the U.S. and tokenized assets gaining ground, institutional curiosity is spiking. Moves like BlackRock’s tokenized funds and PayPal’s stablecoin efforts hint at a finance-blockchain merger. If Converge debuts on schedule and lands major players, it could topple a key DeFi roadblock. Domingo’s optimism shines: “Institutional adoption would be a game-changer.” I’ll wait for the testnet and updates to judge, but Converge is a daring step worth tracking.
