Thread by @leptokurtic_

The holy trinity of crypto protocols that can be worth $50-100b+:

i) Stablecoins
ii) Blockchains
iii) Exchanges

Ethena’s first core product sits in the first category, but creates a unique nexus across all three via USDe.

Today we have released Converge, our vision of how we bind the full-stack together combining all of the above categories into our own chain in partnership with @Securitize and secured by staked $ENA.

We are not satisfied with just one product; we want to win it all.

In our view, the inflow of institutional capital into the space is the defining characteristic of this entire cycle, and will be for the years to come.

Our vision is to build the first purpose built settlement layer where TradFi will merge with DeFi, trillions of dollars of tokenised assets will flow onchain to co-exist with the existing financial infrastructure and applications we have already built around USDe.

We see two core real use cases for blockchains:

i) Settlement for permissionless spot and leveraged DeFi speculation

ii) Storage and settlement for stablecoins and tokenised assets

While the speculation use case has and always will continue to play an important role in crypto, we see a less competitive and much larger opportunity to win the second category over the next decade.

Ethena and Securitize are uniquely positioned to do so, together.

We chose to partner with Securitize as the undoubted market leader in RWAs and tokenisation. While other projects misrepresent the legitimacy of their ties to TradFi entities, Securitize are the real deal having built deep relationships through many years as the chosen tokenisation partner for @BlackRock , @apolloglobal , @KKR_Co , @hamilton_lane amongst others.

Importantly, Converge will be the preferred default native issuance layer of their existing and future tokenised assets, resulting in the most robust tokenised asset ecosystem in all of crypto.

Building on the success of Blackrock's BUIDL, new tokenised products will be issued natively, expanding beyond treasuries to include all forms of securities that will unlock net new financial primitives.

Ethena was the ideal partner to tie this vision together given our deep existing CeFi and DeFi ecosystem of integrations, alongside new applications being built on USDe including the @etherealdex perpetuals exchange which will sit alongside and integrate with these tokenised assets.

With over 350 dApp integrations, 22 chain deployments and ~$6b in assets Ethena USDe has become a crucial building block for DeFi activity across the space. Ethena will bring this critical mass of activity to the chain from day one.

Ethena iUSDe will be issued natively alongside the core financial infrastructure being built around the asset as we saw with USDe in permissionless DeFi.

This is a product which is simply not replicable in TradFi and is uniquely enabled by crypto primitives to provide a compelling vehicle through which billions of dollars will exit the legacy system into the new internet system via Ethena.

One key feature will be the co-existence of institutional versions of existing dApps where Ethena has found product market fit. The chain will feature both permissionless DeFi and permissioned onchain financial applications within the same blockspace where TradFi can plug directly into existing use cases with iUSDe which have already found strong demand in DeFi - compliant deployments of @pendle_fi @MorphoLabs @aave @maplefinance as the first examples, purpose built for TradFi all with iUSDe at the core.

It will take time to do this properly. And that is ok.

We no longer have any interest in shuffling around the same chips between each other. We need to think bigger.

It is time to build the infrastructure, assets and applications that brings real inflows from the existing financial system onchain and into the internet era.

It is time for convergence.