Ethena Labs and Securitize have launched Converge, a new Ethereum-compatible blockchain that utilizes stablecoins for transaction fees. This initiative aims to create a seamless settlement layer for traditional finance (TradFi) and decentralized finance (DeFi), focusing on USDe and USDtb, stablecoins from Ethena Labs. Scheduled to launch in Q2 2025, Converge will allow gas fees to be paid in stablecoins, addressing concerns regarding volatile transaction costs. The blockchain will support $2 billion in tokenized products, including BlackRock's BUIDL fund, which has over $1 billion in assets. Additionally, Converge will have a tri-tiered structure, accommodating both permissionless ecosystems and compliant applications, with Securitize handling KYC processes. To secure the network, validators will stake Ethena's ENA token while maintaining dollar-denominated fees. Several major DeFi protocols are expected to build on Converge, promising a blend of institutional and decentralized financial services.

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