Converge, a tokenization firm backed by Securitize and Ethena, is set to launch its mainnet in Q2 with the help of Arbitrum and Celestia platforms.
Ethena and Securitize to Launch Mainnet Blockchain by End of Q2 with Tap Arbitrum and Celestia
Ethereum-compatible blockchain Converge is set to launch its mainnet in the second quarter of this year, according to Carlos Domingo, CEO of tokenization firm Securitize. The project aims to connect the rapidly growing tokenized real-world assets (RWA) sector with the DeFi space.
Convergence refers to the process of coming together or merging of two or more entities, such as systems, technologies, or ideas.
In physics, convergence occurs when parallel lines meet at a single point, creating a singularity.
In technology, convergence is seen in the integration of different devices and platforms, like smartphones and laptops.
This phenomenon has significant implications for various fields, including science, business, and society.
Converge will use part of Arbitrum’s technology and data availability network Clestia for its real-world asset-focused blockchain, aiming to provide fast blocktimes, USDe and USDtb as gas tokens, and a validator network secured by staked ENA. The Converge chain is designed to support both permissionless DeFi apps and permissioned institutional products.
A convergence chain refers to a blockchain network that combines multiple blockchains into one.
This allows for the sharing of data, assets, and services across different chains, increasing efficiency and interoperability.
Convergence chains utilize cross-chain bridges or sidechains to facilitate communication between separate blockchains.
This enables seamless transactions, asset transfers, and data exchange, promoting a more unified and connected blockchain ecosystem.
The network will use Ethena’s USDe and USDtb as gas tokens to pay for transaction costs across the network. Both tokens are designed with a price anchored to $1, allowing easier accounting for transaction costs. The Converge Validator Network (CVN) is supposed to provide the foundations of the network’s security, by essentially acting as the chain’s security council.
The mainnet launch will be preceded by a testnet launch in the next few weeks, according to Domingo. The public rollout also depends on third-party integrations such as Anchorage for custody support and Fireblocks for key management. The Converge chain plans to bridge traditional finance and crypto rails on a single chain.
A mainnet launch refers to the deployment of a blockchain network's primary chain, also known as the mainnet , from its testing or development environment.
This event marks the transition from a testnet or staging environment to a live production environment.
During a mainnet launch, a blockchain network becomes publicly accessible and available for use by users and developers.
Ethena has quickly become a DeFi powerhouse, spearheading the yield-bearing stablecoin trend with its $5 billion ‘synthetic dollar’ token USDe. Meanwhile, Securitize issues nearly $4 billion in tokenized assets by traditional finance giants like Apollo and Hamilton Lane and BlackRock‘s blockchain-based money market fund token BUIDL.
The Converge chain’s performance relies on a custom sequencer for an Arbitrum-powered blockchain, while using Clestia as the data availability layer underneath it. A sequencer is a key piece of blockchain infrastructure that compiles transactions from layer-2 networks and posts them back to the layer-1 network.
