DeFi, or Decentralized Finance is at a turning point. According to Carlos Domingo, the CEO of Securitize, DeFi won’t reach its full potential unless institutions get involved. To move things forward, Securitize has teamed up with Ethena Labs to launch Converge, a new blockchain compatible with the Ethereum Virtual Machine (EVM). The launch is expected within the next three months. Announced on March 17, 2025, Converge aims to attract institutional investors by combining DeFi with tokenized real-world assets. This effort could be the push that finally brings DeFi into the financial mainstream.
Converge Aims to Bring Institutions Into DeFi
Converge isn’t just another blockchain. It’s a focused attempt to pull institutional money into decentralized finance. Securitize is working alongside Ethena Labs, a company known for building innovative stablecoin infrastructure. Together, they plan to issue tokenized assets—both existing and new—on Converge. They’re also developing DeFi applications in partnership with groups like Maple, Morpho, Pendle, and Aave Labs’ Horizon. To help institutions feel secure, top-tier custodians such as Copper, Fireblocks, and Komainu will provide support, addressing one of the biggest concerns institutions have about entering crypto.
During our conversation, Domingo explained that Converge is on track to go live within three months, with updates scheduled every two weeks leading up to the launch. Although the testnet hasn’t launched yet, prototypes are already in development. He stressed that they’re moving quickly because institutional interest in crypto is gaining serious traction in 2025. The speed of development reflects the broader reality: DeFi needs to evolve beyond its retail base if it wants to earn the trust and money of traditional finance.
Institutions Hold the Key to DeFi’s Next Phase
Domingo didn’t hold back in his view of the current state of DeFi. He believes the sector has been stuck since the peak of the 2021 “DeFi summer.” Without involvement from traditional financial institutions—like banks, asset managers, and hedge funds – he says DeFi won’t grow into the global financial system it’s often imagined to become.
The numbers support his view. As of March 2025, the total value locked in DeFi sits around $100 billion worldwide. While that sounds impressive, it falls far short of earlier expectations. Challenges like price volatility, unclear regulations, and limited liquidity have kept many institutional players on the sidelines. Domingo sees institutional adoption as the missing piece. It doesn’t just bring capital, it also brings legitimacy and helps clarify compliance. That, in turn, builds trust between traditional finance and decentralized platforms.
Converge was created to meet this need. Ethena Labs co-founder Guy Young described it as a settlement layer built to support serious financial use cases. By linking DeFi with tokenized versions of real assets such as real estate, bonds, or commodities, Converge offers a way to reduce the unpredictability and security risks that have kept institutions away from crypto. The strategy is clear: create a platform that feels stable, secure, and scalable enough for professional investors.
How the Idea for Converge Took Shape
The idea behind Converge started when Ethena Labs reached out to Securitize while raising $100 million to build its own blockchain. According to Domingo, they realized that combining institutional DeFi with real-world assets could unlock new opportunities. Securitize brought its experience in tokenizing assets, and Ethena contributed its knowledge of DeFi infrastructure. The result was a shared vision for a chain that bridges both worlds.
Some observers remain skeptical. Critics like David Hoffman have raised concerns that Converge could become more of a private blockchain than a public one. Domingo quickly dismissed that idea, saying that if they wanted a private system, they could have just built a database. Instead, Converge is being designed with interoperability in mind, built for a future where multiple blockchain networks work together.
Domingo explained that the world is moving toward a multichain reality. Converge will support cross-chain functionality using tools like Wormhole. While Ethereum remains important and still hosts most major assets, it suffers from slow innovation, high costs, and delayed finality. Converge offers a faster, more flexible alternative that still connects to Ethereum and other ecosystems. That flexibility may appeal to institutions looking for better options.
A Strong Network of Partners
Converge will launch with the support of several leading DeFi projects. Maple and Morpho are bringing advanced lending protocols. Pendle offers tools for trading future yields. Aave Labs’ Horizon is contributing powerful DeFi infrastructure. To strengthen trust, security partners like Fireblocks, Copper, and Komainu will help protect against risks like hacks, which remain a serious concern in DeFi.
Domingo also hinted that Converge may eventually integrate with other blockchains, giving institutions broader exposure to various networks and assets. This multichain capability would allow for more diversification and risk management within institutional portfolios.
The upside could be huge. Domingo has said in the past that combining tokenized real-world assets with DeFi could grow the market by ten times. He believes tokenized assets alone could surpass $50 billion in value within the next year and a half. With institutions in the picture, that kind of growth seems far more achievable. Picture a future where banks lend against tokenized real estate or hedge funds use smart contracts to manage fixed-income portfolios—Converge could help make that a reality.
Will Converge Be the Breakthrough DeFi Needs?
DeFi still faces serious obstacles. Price volatility, legal uncertainty, and shallow liquidity remain major issues. Converge aims to address all of them by offering a more stable and secure blockchain purpose-built for large-scale use. Still, promises only go so far. The crypto industry has seen plenty of projects launch with big dreams, only to fizzle out. A healthy amount of skepticism remains.
Even so, conditions may be lining up in Converge’s favor. The United States is moving closer to passing stablecoin laws. Tokenized assets are becoming more common. BlackRock has launched tokenized funds. PayPal has introduced a stablecoin. These developments all point to a growing connection between blockchain and traditional finance. If Converge rolls out on schedule and attracts major partners, it could remove one of the biggest roadblocks to DeFi adoption.
Domingo clearly believes the opportunity is real. He called institutional adoption a major bullish signal for DeFi’s future. While it’s too early to call Converge a success, it’s definitely a project worth watching. If it delivers, it could reshape DeFi and finally help the sector move beyond its long-standing limitations.
