Centrifuge advances historic token-to-equity conversion after CP172 passage

Centrifuge has successfully passed a governance vote, CP172, to restructure its foundation into a Cayman Islands exempted company, Centrifuge, Inc. This landmark move establishes a direct 1:1 conversion path for CFG token holders to exchange their governance tokens for tokenized equity in the new corporate entity. The restructuring aims to overcome limitations inherent in non-profit foundation structures, specifically addressing token volatility, institutional governance participation, and traditional capital-raising barriers. Holders with at least 100,000 CFG will be registered as direct shareholders, while smaller holders will utilize a CoinList trust structure to manage administrative requirements. This transition represents a significant shift in the RWA sector, as it marks the first instance of a crypto token offering a direct conversion into legal corporate equity. Centrifuge, which currently manages approximately $1.6 billion in tokenized assets, intends for this change to align the protocol more closely with traditional financial standards. While the governance hurdle is cleared, the project must still secure additional regulatory approvals to finalize the corporate transition. This development highlights a growing trend of RWA protocols seeking to bridge the gap between decentralized governance and established corporate legal frameworks.