Converge Sets the Stage for Scalable Cross-Chain DeFi
- Converge integrates Arbitrum, Celestia, and G2 sequencer to deliver high-speed, scalable DeFi infrastructure for institutions.
- Ethena and Securitize plan to migrate over $7 billion in assets to the Converge network for cross-chain DeFi access.
Converge has finally opened up about their technical specifications and roadmap. In the latest announcement, the blockchain project, a collaboration between Ethena Labs and Securitize, wants to build a super-fast network, compatible with Ethereum, and ready to accommodate institutional financial traffic.
It’s not just empty promises, because they have even targeted a block time as low as 100 milliseconds, and more ambitiously to 50 milliseconds by the end of the year. Imagine, transactions that can be completed before you even have time to brew coffee.
Simplifying DeFi with Stablecoin Gas and Cross-Chain Access
To achieve this, Converge combines several key technologies. Arbitrum is used for Layer-2 scaling solutions, while Celestia is the foundation of its data availability. Behind all that, there is Conduit with a G2 sequencer designed to process transactions in parallel and quickly. But what’s interesting is not just the architecture.
Converge chooses a more practical approach in using gas fees: they will use stablecoins such as USDe from Ethena and USDtb as gas tokens. This could be a game changer, as transaction fees will be more predictable, without the surprise of fluctuating gas prices.
Furthermore, Converge will enable the account abstraction feature with ERC-7702. This feature allows users to set batch transactions and programmable session keys.
In fact, assets from large networks such as Ethereum, Solana, and Arbitrum can be directly connected to the Converge network. So, if you are a developer, this is like opening a big door to bring users across blockchains without the hassle of manual migration.
Over $7 Billion Set to Move Into Converge
What makes all this even more serious is the asset migration plan whose value is nothing to scoff at. Ethena Labs plans to move around $5 billion in USDe stablecoins to this network. On the other hand, Securitize is ready to bring $2 billion of their tokenized assets.
So, before anything else, Converge is already preparing to manage large funds of more than $7 billion. Not to mention Converge is indeed designed to meet institutional standards that require regulatory certainty, high efficiency, and a system that is not easily disrupted.
On the other hand, CNF previously also highlighted Ethena, which has partnered with Alchemy Pay to enable direct purchases of USDe and ENA tokens using Visa, Mastercard, and other fiat payment methods. This means that users can buy tokens without having to go through a centralized exchange or transfer funds to another wallet first.
Not only that, Ethena is also increasingly aggressive in expanding liquidity. They recently minted an additional $225 million worth of BUIDL tokens from BlackRock, which increased their total BUIDL holdings to $1.29 billion.
In terms of price, the ENA token is currently trading at about $0.2774, up slightly by 0.33% in the last 24 hours. But in the last 7 days, the price has still corrected by around 10.38%. Although there are no signs of a major spike, the excitement of new projects such as Converge could be a new spark for the next phase.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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