Centrifuge (CFG)

Overview

Centrifuge (CFG) is a platform for bringing real-world assets (RWAs) onto public blockchains so they can be financed, managed, and used in decentralized finance (DeFi). Instead of limiting onchain activity to purely crypto-native tokens, Centrifuge turns assets like invoices, real estate loans, U.S. Treasury fund shares, and even structured credit into programmable tokens. These tokens can then be pooled, tracked with transparent data, and used as collateral across DeFi applications. The goal is simple to state but hard to build: make traditional finance work at blockchain speed and transparency, while keeping the legal protections of the off-chain world. (docs.centrifuge.io)

A key milestone for the project is its move to an EVM-first architecture. In 2025, CFG migrated to operate natively on Ethereum as an ERC‑20 token, consolidating the earlier split between the governance token on the legacy Centrifuge Chain and its wrapped version (wCFG) on Ethereum. This migration accompanies Centrifuge’s Centrifuge V3 protocol design, which emphasizes ERC‑4626/7540 vault standards and a hub‑and‑spoke model for multichain distribution. (developer.centrifuge.io)

History & Team

Centrifuge was founded in 2017 by a team with deep backgrounds in fintech and supply chain finance: Lucas Vogelsang, Martin Quensel, Markus (“Maex”) Ament, and Philip Stehlik. Several of the founders had previously built Taulia, a leading supply chain finance company, before turning to open blockchain rails for asset finance. (medium.com)

After several years of building the tech stack (including Tinlake, the early Ethereum app for asset pools) and integrations with DeFi protocols, leadership broadened. In February 2025, Centrifuge announced a new executive lineup with Bhaji Illuminati named CEO, with co‑founder Lucas Vogelsang moving to a strategic board role; Martin Quensel became President, and additional senior roles were filled to scale the platform for institutional adoption. (centrifuge.io)

Centrifuge is also backed by venture investors. In April 2024, the company closed a $15 million Series A co‑led by ParaFi Capital and Greenfield, with participation from Arrington Capital, Borderless Capital, Circle Ventures, IOSG Ventures, Wintermute Ventures, and others. This funding was framed as fuel for institutional DeFi and product expansion. (centrifuge.io)

Technology & How It Works

Tokenization, pools, and tranches

At the center of Centrifuge is a tokenization and pool system. Asset originators or fund managers set up a “pool” that issues share tokens representing claims on the underlying assets and cash flows. Pools commonly use a senior/junior tranche design, similar to traditional securitizations: a senior tranche with priority on repayments, and a junior tranche that absorbs first losses in exchange for higher potential yield. Centrifuge’s documentation explains the participants (issuer SPV, asset originator, investors) and how tranche tokens work in practice. (docs.centrifuge.io)

Every pool has a corresponding legal structure. A special purpose vehicle (SPV) holds the assets and is designed to be bankruptcy remote from the originator. The legal contracts mirror the onchain pool design so that onchain state (like investor balances and redemption logic) governs the corresponding off‑chain obligations. Investor onboarding typically includes KYC/AML checks and, in the U.S., accredited investor verification under exemptions such as Regulation D (506(b) or 506(c)). (docs.centrifuge.io)

V3 architecture: Hub-and-spoke design for multichain

Centrifuge’s V3 protocol is built around a hub‑and‑spoke model. A pool chooses a “Hub” chain for core accounting and oracle control. From there, it can distribute share tokens to “Spoke” chains using standardized vault interfaces. ERC‑4626 supports yield‑bearing vaults with synchronous flows, and ERC‑7540 adds asynchronous flows needed for real‑world settlements. This design lets issuers manage one canonical pool while offering liquidity and integrations across multiple networks. (docs.centrifuge.io)

deRWA tokens and DeFi composability

To make institutional assets work smoothly in DeFi, Centrifuge introduced deRWA tokens: freely transferable wrappers around tokenized securities that fit directly into lending markets, DEXs, and yield platforms. Issuers can wrap their regulated funds into deRWA tokens for collateral use, secondary trading, and broader distribution in onchain markets—all while the underlying pool operations remain transparent on Centrifuge. (centrifuge.io)

Integrations and lending markets

Centrifuge has focused on turning tokenized assets into productive collateral. In 2021 it launched the first permissioned RWA market with Aave, initially drawing from Tinlake pools. In 2024 it helped launch a permissioned RWA market on Morpho (on Base) integrated with Coinbase Verifications for streamlined KYC attestations. In 2025, Aave Labs introduced Horizon, a new RWA lending market; Centrifuge joined as a launch partner to enable borrowing against tokenized funds like Janus Henderson’s JAAA (AAA CLO strategy) and JTRSY (tokenized U.S. Treasuries). (governance.aave.com)

Tokenomics & Utility

CFG is the governance and coordination token for the Centrifuge protocol. In 2025, Centrifuge consolidated token representations by migrating CFG to operate natively on Ethereum, replacing both the legacy substrate‑based CFG and the wrapped token (wCFG) on Ethereum. Holders of older tokens can migrate 1:1 to the new ERC‑20 CFG. The migration sets a post‑migration total supply target of 675 million CFG and routes ongoing inflation (3% yearly) to the Centrifuge DAO Treasury on Ethereum, reflecting the protocol’s shift from running a standalone chain to running EVM‑native smart contracts. (developer.centrifuge.io)

The token’s primary use is governance—proposing and voting on protocol upgrades, pool onboarding processes, treasury programs, and standards for extensions (such as permissioning modules or pricing oracles). As Centrifuge deprecates its legacy chain and staking functions, ETH is used to pay Ethereum gas fees; CFG’s role is to coordinate decisions, fund development, and align incentives rather than to serve as a base gas token. The project’s docs outline the phases of shifting governance from chain‑based voting to Snapshot and, ultimately, to an Ethereum onchain framework. (developer.centrifuge.io)

Historically, the initial token generation created 400 million CFG distributed among the foundation, contributors, and early participants with long lockups to align incentives. The migration documentation further details supply endpoints, lockups, and the consolidation of token forms into a single ERC‑20 for clarity across exchanges and DeFi venues. (developer.centrifuge.io)

Ecosystem & Use Cases

Centrifuge’s ecosystem spans both traditional asset managers and DeFi protocols:

• Funds and treasuries: Through partnerships with Anemoy (an onchain asset manager) and Janus Henderson, Centrifuge supports tokenized U.S. Treasury funds (JTRSY) and AAA‑rated CLO strategies (JAAA). These products have been recognized by rating agencies and are being connected to DeFi lending through markets like Aave Horizon. (ir.janushenderson.com)
• Private credit and structured finance: Pools can finance invoices, SME loans, real estate debt, or revenue‑based financing, with issuers using SPVs and investors choosing tranches that fit their risk preferences. This brings securitization mechanics onchain with real‑time reporting. (docs.centrifuge.io)
• DeFi integrations: By standardizing on ERC‑4626/7540 vaults and offering deRWA wrappers, Centrifuge aims to make tokenized assets “plug‑and‑play” collateral across lending protocols, DEXs, and savings apps. The Morpho RWA market on Base and the Aave Horizon launch show how these assets can back stablecoin borrowing and other strategies. (docs.centrifuge.io)

The platform also provides an “RWA Launchpad,” a suite of audited, modular smart contracts that lets builders spin up tokenized products (from funds and ETFs to structured credit) with permissioning and capital flow controls. (centrifuge.io)

Advantages & Challenges

Advantages

• Real‑world grounding with legal recourse: Each pool’s SPV structure and contract templates mirror long‑standing securitization practices while delegating control to onchain logic. This can provide clearer investor rights and transparent operations. (docs.centrifuge.io)
• Composability with standards: Using ERC‑4626/7540 vaults and chain‑abstracted distribution allows assets to interoperate across DeFi and multiple L1/L2s while issuers manage from a single hub. (docs.centrifuge.io)
• Institutional partnerships: Collaborations with Janus Henderson and integrations with Aave, Morpho, and others demonstrate growing pathways for tokenized assets to gain utility as collateral. (ir.janushenderson.com)
• DeFi‑native wrappers: deRWA tokens turn regulated products into freely transferable, DeFi‑ready collateral, widening potential demand and secondary market activity. (centrifuge.io)

Challenges

• Regulatory complexity and fragmentation: Because issuers operate under different legal regimes (and some offerings target accredited investors), user access and transferability can vary by pool and jurisdiction. (docs.centrifuge.io)
• Off‑chain dependencies: SPVs, fund administrators, and pricing oracles link onchain tokens to the real world. While necessary, these add operational steps and require careful coordination. (docs.centrifuge.io)
• Migration and change management: The shift from a standalone chain to an Ethereum‑native protocol improves composability, but it also requires token migrations and updated governance processes across venues and exchanges. (developer.centrifuge.io)

Where to Buy & Wallets

Centrifuge can be purchased on centralized exchanges that support the Ethereum‑based CFG token. KuCoin supports the migrated ERC‑20 CFG and completed its token swap in May 2025. Kraken has also supported CFG and announced its migration to the new Ethereum token. Coinbase previously supported the wrapped token (wCFG) on Ethereum and has published guidance and updates related to the naming consolidation and migration. CFG also trades on decentralized exchanges on Ethereum, such as Uniswap, using the official ERC‑20 contract. For exact listings and availability by region, check the exchange’s asset page. (kucoin.com)

CFG is an ERC‑20 token. MetaMask, Coinbase Wallet, and other EVM wallets can hold CFG. Historically, the legacy Centrifuge Chain used Substrate wallets like Talisman, SubWallet, or Polkadot.js; with the migration to Ethereum, most users will rely on EVM wallets going forward. Centrifuge’s onboarding guides reference MetaMask, WalletConnect, and Coinbase Wallet for Ethereum‑based pools. (docs.centrifuge.io)

Regulatory & Compliance

Centrifuge is a technology platform; each pool is operated by an issuer that follows a legal framework appropriate to its investors and jurisdictions. The standard approach is to set up a special purpose vehicle (SPV) that holds the assets and issues share tokens to investors. Onboarding commonly involves KYC/AML screening, sanctions checks, and—in the United States—accredited investor verification when offerings are made under Regulation D exemptions. The legal templates aim to map real‑world contracts to onchain logic so that token balances and redemption rules have clear legal effect. (docs.centrifuge.io)

Because issuers choose their own offering structure and target markets, some pools are permissioned (transfer‑restricted) while others are more open. Centrifuge’s share‑token modules explicitly support different levels of permissioning—ranging from fully transferable to whitelisted‑only—so that issuers can meet compliance and distribution needs. Recent integrations also experiment with attestation‑based verification (for example, Coinbase Verifications in the Morpho RWA market) to streamline access while maintaining regulatory checks. (docs.centrifuge.io)

On shariah/halal considerations, Centrifuge’s design can support structures that align with Islamic finance principles, such as asset‑backed financing where risk and ownership are clearly defined. Some Islamic finance experts view such arrangements as compatible when the underlying assets and contracts avoid interest (riba) and speculative elements. At the same time, not all Centrifuge‑powered products would qualify. For example, tokenized funds that invest in interest‑bearing instruments like conventional U.S. Treasuries would not be considered shariah‑compliant by many scholars. In practice, halal alignment depends on the specific pool’s assets and contracts rather than on the Centrifuge protocol itself. (docs.centrifuge.io)

Future Outlook

Centrifuge is moving from “can we tokenize assets?” to “how do tokenized assets gain utility and velocity in DeFi?” The V3 architecture, with ERC‑4626/7540 vaults and a hub‑and‑spoke model, is designed for exactly that: pools can manage accounting and oracles in one place while distributing share tokens wherever liquidity exists. deRWA wrappers add a freely transferable layer so regulated funds can plug into lending, trading, and savings use cases without custom integrations each time. (docs.centrifuge.io)

The broader ecosystem is also opening. Aave’s Horizon market lets institutions borrow stablecoins against tokenized funds, which turns RWAs from passive assets into active collateral. Partnerships with major asset managers (like Janus Henderson via Anemoy) and experiments with new settlement layers (such as joining Converge, a purpose‑built chain for tokenized finance) suggest a future where multiple issuers, products, and apps interoperate. In that world, CFG’s role as a governance and coordination token becomes the way the community sets standards, funds audits, and prioritizes integrations across chains. (aave.com)

Summary

Centrifuge (CFG) brings the mechanics of securitization and fund operations onto public blockchains. Pools are built with legal SPVs and transparent onchain accounting; tranche tokens express risk tiers; and standardized vaults make the assets portable across DeFi. The project’s 2025 migration to a single ERC‑20 CFG simplifies token handling and focuses the protocol on EVM‑native governance and composability. With deRWA wrappers, an expanding Launchpad toolkit, and integrations into markets like Aave Horizon and Morpho, Centrifuge aims to turn tokenized assets from static records into programmable collateral. For readers exploring RWAs, Centrifuge is a useful case study in blending finance, law, and code to make off‑chain assets usable onchain—at scale. (developer.centrifuge.io)