Centrifuge
RWA · Private Credit · CFG
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.
Tokenizing illiquid real-world business assets.
Assets under management
$1.64B
Latest data · 15 min delay
Risks identified
- 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.