Centrifuge proposes token-to-equity conversion for CFG holders

Centrifuge has initiated a governance proposal to allow CFG token holders to convert their holdings into equity or equity-like instruments in the underlying business entity. Currently in a 14-day Request for Comments phase, the proposal seeks community feedback before moving toward a formal vote. This initiative represents a significant shift for the protocol, as CFG currently functions primarily as a governance and utility token within the Ethereum-based ecosystem. With a total supply of approximately 675 million tokens, the move aims to bridge the gap between decentralized governance and traditional corporate ownership. The proposal acknowledges that such a conversion would likely necessitate strict KYC and AML compliance measures for participants. By formalizing this pathway, Centrifuge is exploring a new model for DeFi projects to provide token holders with direct economic claims in the protocol's parent entity. This development highlights an evolving trend in the RWA sector where projects seek to align token value more closely with real-world business performance.