Centrifuge

Centrifuge tokenizes illiquid real-world business assets (invoices, mortgages, trade finance) through bankruptcy-remote SPV structures. DROP/TIN senior-junior tranche tokens link legal collateral to on-chain investors; JAAA and JTRSY add tokenized CLO and Treasury exposure.

Per-pool bankruptcy-remote SPVs with DROP (senior) / TIN (junior) tranches connect legal collateral to on-chain lenders.

- Centrifuge V3: EVM-based protocol for onchain asset management, launched 2025 after migrating off the legacy Polkadot-based Centrifuge Chain. Provides chain abstraction and a unified interface for issuing and administering tokenized funds across 10+ Ethereum-compatible networks including Ethereum, Base and Arbitrum. - Tinlake: Centrifuge's original (2018/2020-era) open marketplace and investment dApp for financing tokenized real-world assets. Introduced the two-tranche DROP (senior) / TIN (junior) securitization model that gives investors differentiated risk-reward exposure to asset pools. - Pools & Tranches (DROP / TIN): Asset originators (Issuers) create pools of tokenized RWAs; investors fund senior (DROP) and junior (TIN) tranches. TIN absorbs first losses and earns higher yield, DROP has payout priority — mirroring traditional structured-credit waterfalls. - RWA tokenization / NFTs: Real-world assets such as invoices, mortgages, trade-finance receivables and treasury holdings are represented onchain (originally minted as NFTs) and used as collateral to originate financing pools. - CFG token: Native ERC-20 utility and governance token. On 20 March 2025, governance proposal CP149 consolidated legacy token versions into a single Ethereum-native CFG used for voting on protocol development, treasury and risk frameworks.

- Centrifuge (CFG) — Token, Governance token - Pool Tokens (various) (Pool Tokens) — Receipt, Per-pool tranche tokens

- Counterparty: Pools finance off-chain private credit and receivables; if underlying borrowers or asset originators default or fail to remit repayments, investors — especially junior (TIN) tranche holders — can lose principal. Repayment depends on off-chain legal enforcement of loan agreements and SPV structures. - Collateral: Collateral (invoices, mortgages, fix-and-flip loans, corporate bonds) is illiquid and valued off-chain. Valuation errors, collateral deterioration, or delayed liquidation can leave pools under-collateralized versus the tokens issued against them. - Regulatory: Tokenizing securities and Treasury funds implicates securities, KYC/AML and cross-border regulations. Access is often permissioned/whitelisted, and evolving rules across jurisdictions (SPVs, transfer agents, fund licensing) could restrict issuance or investor eligibility. - Smart Contract: The V3 protocol runs across 10+ chains with complex tranching, cross-chain messaging and fund-administration logic. Bugs or exploits in the contracts could cause loss of funds despite multiple third-party audits and fuzzing coverage. - Governance: Protocol direction, treasury and risk parameters are controlled by CFG-token-weighted DAO voting. Low voter participation or concentration of CFG could enable governance capture; the 2025 shift of execution to Centrifuge Labs concentrates operational control under foundation oversight.

- Securitization / structured credit (ABS): similar — Centrifuge pools bundle income-producing assets (invoices, mortgages, receivables) and issue tranched claims (DROP senior / TIN junior) with a payment waterfall — the same senior/subordinated structure used in asset-backed securities.; differs — Issuance, subscriptions, redemptions and the cap table are handled onchain via smart contracts and stablecoins rather than through banks, custodians and clearing houses, enabling smaller ticket sizes, near-real-time settlement and transparent onchain accounting. - Money-market / tokenized Treasury funds: similar — Products like the Anemoy Liquid Treasury Fund give investors T-bill exposure much like a traditional government money-market fund.; differs — The fund is issued as a transferable onchain token that settles 24/7, can be used as DeFi collateral, and is administered across multiple public blockchains instead of via a traditional transfer agent.