DeFi, or Decentralized Finance, has reached a pivotal moment. Carlos Domingo, CEO of Securitize, firmly believes that without institutional adoption, DeFi’s growth will remain stunted, unable to fulfill its transformative potential. To address this bottleneck, Securitize has partnered with Ethena Labs to introduce Converge, a new Ethereum Virtual Machine (EVM)-compatible blockchain slated for launch within the next three months. Announced on March 17, 2025, Converge targets institutional investors by merging DeFi with tokenized real-world assets (RWA). Could this ambitious project be the catalyst to propel DeFi into the mainstream?
Converge: A Blockchain Built for Institutional DeFi
Converge isn’t just another entry in the crowded blockchain space—it’s a deliberate effort to bring institutional capital into DeFi. By teaming up with Ethena Labs, known for its innovative stablecoin solutions, Securitize aims to issue both existing and future tokenized assets on this platform while crafting DeFi applications alongside top-tier partners like Maple, Morpho, Pendle, and Aave Labs’ Horizon. To instill confidence among institutions, custodial support comes from industry leaders Copper, Fireblocks, and Komainu, ensuring security—a non-negotiable for big players entering this volatile domain.
In a conversation with me, Domingo revealed that Converge will launch within three months, with bi-weekly updates planned until the rollout. Though the testnet isn’t live yet, prototypes are already in development. “We’re not wasting any time,” he emphasized, underscoring the urgency as institutional adoption gains momentum in 2025. This rapid timeline reflects a broader shift: DeFi must evolve beyond its retail roots to attract the deep pockets and credibility of traditional finance.
Why Institutional Adoption Holds the Key
Domingo’s perspective is unequivocal: DeFi has been “stuck” since its 2021 peak, often dubbed the DeFi summer. “There’s a clear problem with DeFi growth unless there’s institutional adoption,” he told me. Without the backing of banks, hedge funds, and asset managers, DeFi risks languishing as a niche experiment rather than becoming a cornerstone of global finance.
The data paints a sobering picture. As of March 2025, DeFi’s total value locked (TVL) hovers around $100 billion worldwide—impressive, yet far from the explosive trajectory once envisioned. Volatility, regulatory ambiguity, and limited liquidity have kept mainstream adoption at bay. Domingo sees institutional involvement as the missing link, providing not just capital but also regulatory clarity. Moreover, it builds trust to bridge the gap between decentralized innovation and traditional systems.
Converge steps into this void with purpose. Guy Young, co-founder of Ethena Labs, described it as a “settlement layer” addressing a glaring market need. By pairing DeFi’s agility with tokenized assets—think real estate, bonds, or commodities—Converge aims to lure institutional players wary of DeFi’s wild swings and past security breaches. It’s a calculated bet on stability and scale.
The Genesis of Converge
The seeds of Converge were planted when Ethena Labs approached Securitize during a $100 million fundraising effort for its own chain. “They saw the power in not just institutional DeFi, but in bringing our RWAs into the mix,” Domingo explained. Securitize’s prowess in tokenizing assets, combined with Ethena’s DeFi innovation, sparked a vision for a blockchain that could serve both worlds.
Not everyone’s convinced, though. Critics like David Hoffman raised eyebrows, questioning whether Converge might lean toward a private blockchain model. Domingo was quick to set the record straight: “It’s not private—that’s why we’re not just building a database.” He argued that developers could rely on simpler tech for a private chain, but they designed Converge for interoperability in a multichain world, where diverse networks coexist.
“The world is multichain,” Domingo said. “We’ll see many chains, all linked up. Tools like Wormhole enable cross-chain connectivity. Ethereum is fantastic—our biggest assets live there—but it’s slow to innovate, expensive, and lacks fast finality.” Converge offers a nimble alternative without abandoning support for other ecosystems, a flexibility that could resonate with institutions seeking options.
A Powerhouse Partnership Ecosystem
Converge’s strength lies in its partners. Maple and Morpho bring advanced lending protocols, Pendle delivers yield-trading capabilities, and Aave Labs’ Horizon contributes cutting-edge DeFi tools. On the security front, Fireblocks, Copper, and Komainu address institutional concerns about hacks—a persistent thorn in DeFi’s side. Domingo hinted at plans to extend support to other blockchains, offering institutions multichain exposure to diversify their portfolios.
The potential payoff is massive. Domingo previously suggested that integrating RWAs with DeFi could grow the market tenfold, potentially pushing tokenized assets beyond $50 billion within 18 months. With institutional backing, this lofty goal starts to feel plausible. Imagine banks using Converge to lend against tokenized real estate or hedge funds trading yields on-chain—these scenarios could redefine DeFi’s scope.
Can Converge Shatter DeFi’s Ceiling?
DeFi faces well-known hurdles: price swings, regulatory uncertainty, and shallow liquidity pools. Converge tackles these head-on with a blockchain engineered for reliability and scalability. Yet, promises are one thing—delivery is another. The crypto space is littered with hyped projects that fizzled out, so skepticism is warranted.
That said, the stars may be aligning. With stablecoin legislation looming in the U.S. and tokenized assets gaining traction, institutional interest is surging. BlackRock’s tokenized funds and PayPal’s stablecoin moves signal a shift toward blending traditional finance with blockchain. If Converge launches on time and secures big-name adopters, it could dismantle a critical barrier to DeFi growth.
Domingo’s enthusiasm is palpable. “Real institutional adoption would be hugely bullish,” he said. I’ll hold off on a final verdict until the testnet drops and updates roll in, but Converge represents a daring leap for DeFi’s future—one that could reshape the landscape if it lands right. For now, it’s a project worth watching closely as DeFi fights to break free from its plateau.
