Centrifuge CEO Bhaji Illuminati says the market is getting pickier about tokens
RWA Signal Insight
InfrastructureCentrifuge is transitioning from a token-governed model to a traditional equity structure by allowing holders to swap CFG tokens for shares in a re-registered Cayman Islands entity. This strategic shift, formalized under governance proposal CP172 and approved by 98% of the community in September 2026, aims to unify value accrual and simplify corporate governance. The decision follows institutional due diligence that identified the project's token-based structure as a significant risk, leading to lost business opportunities. By adopting a conventional cap table, Centrifuge intends to remove barriers for traditional finance clients who struggle to underwrite decentralized governance models. This move reflects a broader industry trend where established blockchain projects prioritize institutional compatibility over native token utility. As of early 2025, Centrifuge had facilitated over $663 million in financed assets and tokenized 1,585 assets across multiple chains. The transition highlights a growing market skepticism toward native tokens, particularly as data shows over 90% of major-exchange tokens trading below their initial listing prices one year post-launch.
Key points
- Centrifuge approved CP172 to convert CFG tokens into equity in a Cayman Islands entity.
- Institutional due diligence flagged the previous token-governed structure as a barrier to business deals.
- The platform has historically facilitated over $663 million in financed assets across multiple blockchains.
- The shift aims to align value accrual and simplify underwriting for traditional financial institutions.
Background
Centrifuge is a decentralized finance protocol designed to bring real-world assets onchain by allowing businesses to tokenize and finance assets like invoices and real estate. It functions as a bridge between traditional credit markets and decentralized liquidity, enabling investors to earn yields backed by tangible collateral. The platform utilizes its own infrastructure to facilitate the origination and management of these tokenized assets.