What is Centrifuge (CFG)?

Deep Dive

1. Purpose & Value Proposition

Centrifuge solves inefficiencies in traditional finance by allowing businesses to tokenize real-world assets (e.g., invoices, royalties) as collateral, unlocking liquidity without intermediaries. Investors gain exposure to uncorregulated yields, while SMEs access cheaper capital. Its infrastructure supports institutional-grade products like tokenized Treasury funds and the S&P 500 Index (Centrifuge Docs).

2. Technology & Architecture

Originally a Polkadot parachain, Centrifuge migrated to an EVM-native protocol (V3) in 2025, consolidating its token on Ethereum and enabling cross-chain interoperability via networks like Base and Arbitrum. This shift allows asset managers to deploy tokenized RWAs across multiple chains while maintaining compliance and liquidity (Centrifuge V3 Launch).

3. Tokenomics & Governance

CFG is the governance token, transitioning from Substrate-based to ERC-20. Holders vote on protocol upgrades, treasury allocations, and partnerships. The total supply increased to 675M CFG post-migration, with 3% annual inflation funding the DAO treasury. Legacy tokens (wCFG) can migrate until November 2025 (Migration Guide).

Conclusion

Centrifuge reimagines finance by merging TradFi assets with DeFi’s programmability, offering scalable infrastructure for institutions and retail. With over $1B in tokenized assets and partnerships like S&P DJI, its success hinges on balancing regulatory compliance with blockchain’s permissionless ethos. Can Centrifuge’s multi-chain rails become the standard for global asset tokenization?