Ethereum’s Layer 2 solution Arbitrum has introduced Converge, a new blockchain aimed at revolutionizing the tokenization of real-world assets (RWAs). Developed by Ethena Labs and Securitize, Converge is designed to act as a settlement layer for tokenized assets, bringing billions of dollars worth of stable assets into the decentralized finance (DeFi) ecosystem.
The launch of Converge marks a significant step for Arbitrum as it pushes further into the world of RWA tokenization, creating opportunities for enhanced liquidity in DeFi markets. The blockchain, which operates with a modular data availability layer from Celestia, offers faster and more reliable data processing. Two stablecoins—USDe and USDtb—will act as gas tokens to ensure stability in transaction fees.
Converge’s initial setup will feature block times of 100ms, with plans to reduce this to 50ms in future upgrades. Validators will secure the network through sENA, and the chain will host major decentralized finance applications, including Ethereal DEX, with additional appchains expected in the future.
In addition to its technical advancements, Converge will also introduce the Stylus upgrade, which will allow developers to write smart contracts in Solidity, Rust, C, and C++, providing greater flexibility and scalability for applications. The assets managed by Ethena Labs ($5 billion) and Securitize ($2 billion) will be transferred to Converge, significantly boosting its liquidity and market presence.
This move comes at a time when Layer 2 solutions are gaining increasing adoption, with Base, another Ethereum Layer 2 network, processing significantly more operations than Ethereum’s Mainnet. While Arbitrum has seen a decline in usage, it remains a strong player in the space, with growing infrastructure and rollup activity.
Following the announcement, Arbitrum’s native token, ARB, saw a 14% price increase after being added to the Robinhood trading platform. At the time of writing, ARB was trading at $0.2808, showing a slight 0.11% uptick in the past 24 hours, with trading volume rising by 6.84% to $115.38 million.
As Arbitrum continues to innovate with Converge, the upcoming Ethereum Pectra upgrade, set to go live on May 7, is expected to further shape the future of Layer 2 networks and their role in the evolving DeFi landscape.
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