Ethereum Layer 2 network Arbitrum has launched a new project called Converge, a blockchain for processing tokenized real-world assets (RWAs) and on-chain finance.
Created by Ethena Labs and Securitize, Converge aims to bring billions of dollars in stable assets into decentralized finance (DeFi).
In tandem, Ethena Labs and Securitize are migrating more than $7 billion in assets to the Converge network. Ethena is doing $5 billion in general stable synthetic dollar (USDe) transfers, and Securitize, the leader in tokenized tokens, is doing $2 billion in tokenized exchanges.
Converge rethinks blockchain speed, fees, and flexibility for next-gen DeFi and RWA growth
On the tech side of the stack, Converge settles transactions on Celestia and transfers stablecoins and NFTs on Layer 1.
One of the major innovations involves transaction fees. Thus, instead of a native token like ETH exhibiting high volatility, Converge uses two stablecoins — USDe and USDtb — as the gas tokens. It helps keep transaction costs predictable and cheap, a huge win for businesses and users moving real assets.
Block times will only be 100 milliseconds at launch — already fast. Sohera and others are working on upgrades to move it faster, including block times as short as 50 milliseconds shortly.
Validators stake sENA, a staked version of Ethena’s token, to handle network security.
Developers building on Converge will be able to use more tools. The future Stylus upgrade will allow them to write smart contracts in various programming languages, including Solidity, Rust, C, and C++. Thus making development significantly more flexible and scalable than in many existing blockchains.
Besides hosting Ethereal DEX, the first significant DEX on Converge, the new network aims to attract many more app chains and DeFi protocols in the next few months.
Arbitrum strides onward amid mounting competition in Layer 2 space
Converge launches as Ethereum Layer 2 networks are exploding — and competition is fierce.
Last year, Ethereum Mainnet supported an average of 14.10 User Operations Per Second (UOPS), according to recent data. For comparison, Base, Coinbase’s Layer 2 solution, averaged 83.99 UOPS over the reporting period and hit a high of 155.44 UOPS at the beginning of 2025.
According to L2Beat, Arbitrum’s main rollup network, Arbitrum One, has dropped 35.9% in 30-day usage. Yet even with the drop, Arbitrum is a formidable force. Indeed, rollup activity peaked again towards the end of 2024, indicative of rising trust in Layer 2 scaling solutions.
The momentum may already be changing. Robinhood added trading of Arbitrum’s ARB token this week. ARB’s price spiked nearly 14% right after the announcement.
ARB was the only cryptocurrency to trade on a moderate gain of 0.11%, at 0.2808 at press time. Trading volumes increased by 6.84% to more than $115 million.
Analysts also expect demand to increase gradually for ARB as the RWA market grows and more applications join Converge.
The Ethereum Pectra upgrade is also expected to launch on the mainnet before May 7, and new upgrades to Ethereum should bolster not only ETH but also Layer 2 solutions like Arbitrum.
