What is Centrifuge (CFG)?

Deep Dive

1. RWA Tokenization Engine

Centrifuge converts real-world assets (e.g., corporate loans, U.S. Treasuries, S&P 500 exposure) into blockchain-based tokens. These tokens act as collateral for loans or tradable instruments, allowing businesses to access DeFi liquidity while offering investors stable yields. For example, its partnership with Janus Henderson tokenized a $1B AAA-rated CLO fund (Centrifuge Docs).

2. EVM-Native Architecture

Originally a Polkadot parachain, Centrifuge transitioned to an Ethereum Virtual Machine (EVM)-compatible protocol in 2025. This shift (V3 upgrade) improved cross-chain interoperability, letting users deploy assets on Ethereum, Avalanche, and Base while consolidating CFG into a single ERC-20 token. The move aligns with institutional demand for EVM ecosystems (Centrifuge Migration Guide).

3. CFG Token Utility

CFG is a governance token, enabling holders to vote on protocol upgrades, treasury allocations, and partnerships. Post-migration, its supply increased to 675M (from 562M) to fund incentives and liquidity. Legacy CFG holders must migrate to the new ERC-20 token by November 2025 to retain governance rights.

Conclusion

Centrifuge is redefining asset liquidity by merging TradFi reliability with DeFi’s efficiency, powered by a community-governed token. As RWAs gain traction, can Centrifuge maintain its lead in standardizing blockchain-based financial instruments?