Ethena Labs and Securitize have announced the launch of Converge, a layer-1 blockchain focused on institutional capital flows and integrating tokenized assets with DeFi. 

According to Ethena Labs’ March 17 announcement, the initiative aims to provide a purpose-built network for permissioned and permissionless financial applications.

Ethena Labs and Securitize plan to release technical documentation in the coming weeks, followed by a developer testnet. The mainnet launch is scheduled for the second quarter. 

Institutional capital and tokenized assets

Ethena Labs and Securitize see supporting DeFi speculation and providing storage and settlement for stablecoins and tokenized assets as two primary applications for blockchain technology. 

While speculative activity remains a core use case, the firms believe a more substantial opportunity exists in the institutional adoption of tokenized financial products. 

Securitize has issued approximately $2 billion in on-chain assets, including BlackRock’s BUIDL fund and products from Apollo, Hamilton Lane, and KKR. The firm’s integration with Converge will make it the primary issuance layer for tokenized assets, expanding its scope beyond treasury products to a broad range of financial instruments. 

Ethena Labs will also bring its suite of stablecoins and yield-bearing assets—USDe, USDtb, and iUSDe—to Converge, facilitating new institutional-grade financial products.

Financial and technical framework

Converge is an Ethereum Virtual Machine (EVM)-compatible execution environment. Institutional validators will secure the network by staking ENA tokens, while USDe and USDtb will function as native gas tokens, simplifying transactions. 

The blockchain will operate with three parallel application tiers. The first is a permissionless DeFi ecosystem supporting USDe-enabled applications and projects incubated by Ethena Labs.

The second unit is permissioned applications, allowing traditional financial institutions to interact with parties that are compliant with know-your-customer procedures using iUSDe and USDtb.

The final part consists of new financial products leveraging Securitize’s tokenized securities, enabling credit, fixed-income leverage, and equity trading via spot and perpetual swaps.

Moreover, the announcement revealed protocols committed to building on Converge, focusing on institutional-grade DeFi solutions. The names include Horizon by Aave Labs, Pendle, Morpho Labs, Maple Finance, and EtherealDEX.

Converge will also integrate major infrastructure providers, including LayerZero for cross-chain interoperability, Pyth Network for price oracles, and Wormhole for asset bridging.

Furthermore, the blockchain has support from institutional custodians such as Anchorage, Copper, Fireblocks, Komainu, and Zodia Custody. The firms will offer asset management and key custody services.

The post Ethena Labs and Securitize launch institutional-focused Layer-1 blockchain called Converge appeared first on CryptoSlate.

As of today, Ethereum price is trading at approximately $1,900, reflecting a slight increase over the past 24 hours. With the highly anticipated FOMC meeting happening in 2 days, Ethereum's price could experience significant volatility. Will the Federal Reserve's decision push ETH below $1,000, or will it sustain current levels? Here's an Ethereum price prediction on what to expect.

Ethereum Price Prediction Ahead of the FOMC Meeting

1- Current Ethereum Price Trends

Ethereum's network activity has been on a decline, with daily active addresses and new wallet creations hitting yearly lows. This decrease in on-chain engagement has led to reduced transaction fees and increased inflationary pressures, adding to bearish sentiment in the market.

Analysts warn that if Ethereum's price dips below the $1,900 support level, it could trigger liquidation from long-term holders, accelerating further price declines. The critical support range between $1,900 and $1,843 is under close watch, especially as the FOMC meeting looms. The outcome of this meeting could dictate whether Ethereum maintains its position or faces a steep decline.

2- FOMC Meeting's Potential Impact on Ethereum Price

The Federal Open Market Committee (FOMC) meeting is expected to deliver key insights into U.S. monetary policy, particularly concerning interest rates and inflation control. A hawkish stance could strengthen the U.S. dollar, leading to downward pressure on risk assets like Ethereum. Conversely, a dovish approach might ease market fears, allowing ETH to hold or even recover.

Market participants are closely watching the Federal Reserve's tone, as stricter policies could lead to broader crypto market corrections. Ethereum's price movement in the coming days will heavily depend on these macroeconomic signals.

3- Revised Ethereum Price Prediction

Standard Chartered recently revised its Ethereum price target for 2025 from $10,000 to $4,000, citing increased competition from Layer-2 solutions like Coinbase's Base. However, these predictions could shift dramatically based on the upcoming FOMC decision. If stricter policies are announced, bearish scenarios could dominate, potentially pushing ETH toward lower support levels.

Will ETH Price Crash below $1K?

Ethereum's price is at a pivotal point. The upcoming FOMC meeting could determine whether ETH sustains its price above the $1,900 mark or risks a deeper fall. If bearish sentiment prevails post-meeting, Ethereum could test lower supports, raising concerns of a potential drop below $1,000. However, a favorable outcome could strengthen investor confidence and keep ETH above critical levels.

Investors are advised to stay cautious and closely monitor the FOMC's announcements and Ethereum's subsequent price reactions. Technical levels and macroeconomic signals will be key in determining ETH's short-term trajectory.