What is Centrifuge (CFG)?

Deep Dive

1. RWA Tokenization Engine

Centrifuge transforms illiquid real-world assets (e.g., invoices, Treasury bonds, CLOs) into blockchain-based tokens. These tokens act as collateral for loans on DeFi platforms like Aave and MakerDAO, offering SMEs cheaper capital and investors stable yields. For example, its partnership with Janus Henderson tokenized a $1B AAA-rated CLO fund (Centrifuge).

2. Multichain, EVM-Native Architecture

Originally a Polkadot parachain, Centrifuge migrated to Ethereum in 2025 as an EVM-native protocol (V3). This lets it operate across Ethereum, Base, Avalanche, and others, using Wormhole for cross-chain liquidity. The shift enhances compatibility with institutional tools and DeFi ecosystems while phasing out its legacy chain (Docs).

3. Governance & Tokenomics

CFG governs protocol decisions, including asset strategies and treasury spending. Post-migration, its supply is capped at 675M tokens (115M newly minted for incentives). A 3% annual inflation funds the DAO treasury. Legacy CFG holders can migrate until November 2025 to retain governance rights (Centrifuge).

Conclusion

Centrifuge is a foundational protocol for onchain finance, tokenizing trillions in real-world value while balancing DeFi innovation with institutional requirements. As RWA adoption grows, can Centrifuge’s open infrastructure become the standard for global asset tokenization?