Firstly Centrifuge doesn’t tokenize stocks or bonds — it brings off-chain financing into DeFi through private credit markets. By allowing real-world businesses to tokenize assets like invoices, royalties, or real estate receivables, Centrifuge gives on-chain investors exposure to yield backed by actual, income-producing assets.
As DeFi seeks more stability and real-world relevance, Centrifuge leads the charge in structured, asset-backed lending.
What Is Centrifuge?
In essence Centrifuge is a decentralized platform that brings real-world assets (RWAs) into DeFi. Its infrastructure allows businesses to finance illiquid, off-chain assets by issuing collateralized pools on-chain — fully transparent and accessible to crypto-native investors.
Each pool tokenizes a portfolio of real-world debt, like invoices or property income
Investors receive yield-bearing tokens, tied to real revenue streams
CFG is the native token, used for staking, governance, and future utility
Because Centrifuge focuses on asset quality and process transparency, it unlocks entirely new capital flows into Web3.
How CFG Works
CFG supports the protocol by powering governance, validator incentives, and long-term decentralization.
CFG holders vote on asset onboarding, borrower approval, and risk parameters
Stakers help secure the protocol, by validating on the Centrifuge Chain
Future staking and liquidity programs, will reward long-term CFG holders
CFG is also used to govern Tinlake, the DeFi front-end for RWA investment
Cross-chain integrations increase CFG’s utility, across Ethereum and Polkadot
Because CFG ties together governance, trust, and economic participation, it plays a vital role in maintaining the integrity of the RWA ecosyste
Why Centrifuge Is Gaining Momentum
Centrifuge has earned credibility by consistently shipping and securing partnerships — even in a bear market:
Tinlake has hosted real asset pools since 2020, including invoice finance, real estate, and IP royalties
Partnerships with MakerDAO and Aave, show DeFi’s appetite for real yield
Asset originators onboard with full legal documentation, increasing transparency
Investors can access fixed returns, backed by off-chain payments
Centrifuge is built on Substrate, but bridges into Ethereum DeFi seamlessly
Because it offers both institutional rigor and DeFi accessibility, Centrifuge attracts users looking for stable, collateralized returns.
Real-World Use Cases
Centrifuge focuses on financing real, income-producing assets that don’t live on-chain — yet still require liquidity:
Small businesses tokenize unpaid invoices, to unlock working capital
Real estate companies tokenize rent-backed loans, for property refinancing
Music and media firms finance royalty streams, against expected revenue
Trade finance firms securitize contracts, offering fixed-rate returns
Institutions gain access to new yield streams, without traditional middlemen
Because Centrifuge deals in real borrowers and tangible asset flows, its model offers a uniquely grounded form of on-chain lending.
Composability and Ecosystem
Centrifuge is designed to plug into the DeFi stack — while respecting regulatory boundaries and risk processes.
Pools are launched on Tinlake, Centrifuge’s Ethereum-based dApp
Assets are issued via NFTs, which represent off-chain legal rights
Smart contracts handle investor shares, interest payments, and redemptions
CFG governance controls protocol-level risks, like borrower approval
Integration with Maker and Aave, brings RWA exposure to existing DeFi users
Because Centrifuge connects asset issuers and investors directly, it allows DeFi to function like a real credit market — at scale.
Cross-Chain and Roadmap Progress
Centrifuge continues to scale with new integrations, investor access points, and borrower pipelines:
Launched Centrifuge Chain on Substrate, enhancing speed and scalability
Bridged to Ethereum, allowing liquidity to flow between DeFi and RWA pools
Ongoing work with MakerDAO and Aave, integrates RWA vaults into lending markets
Future roadmap includes DAO-managed asset onboarding, and credit scoring systems
New asset classes like carbon credits and green infrastructure, are under review
Because Centrifuge focuses on real-world compliance and ecosystem fluidity, it evolves to meet both crypto and institutional needs.
Risks and Limitations
Centrifuge offers a strong foundation, but several challenges still exist:
RWA onboarding depends on third-party legal processes, which can be slow
Yield depends on real-world borrower performance, introducing default risk
CFG token utility is still maturing, with staking and rewards not yet fully deployed
Limited secondary liquidity, may restrict short-term exits for investors
Market education remains a hurdle, especially outside core DeFi circles
Still, for users seeking yield backed by real assets and structured risk, Centrifuge provides a proven and accessible solution.
Summary Checklist
Centrifuge (CFG) brings real-world assets like invoices and property into DeFi
CFG supports governance, staking, and cross-chain protocol growth
Use cases include private credit, royalties, and real estate tokenization
Built on Substrate but integrated with Ethereum, via Tinlake
Partnered with MakerDAO, Aave, and institutional originators
Risks include borrower performance, low liquidity, and token utility development