Centrifuge advances historic token-to-equity conversion after CP172 passage

Crypto governance votes usually produce more heat than light. CP172 is different. Centrifuge’s proposal to restructure its foundation into a Cayman Islands exempted company, Centrifuge, Inc., passed a final Snapshot vote held between September 3 and September 10, 2026, and in doing so it marked what the project describes as the first time a crypto token has been given a direct conversion path into tokenized equity.

What CP172 actually does

The proposal restructures the Centrifuge Network Foundation into Centrifuge, Inc., a Cayman Islands exempted company. That legal wrapper allows the new entity to issue equity shares, something a non-profit foundation structure generally cannot do.

CFG token holders who choose to participate can convert their tokens into shares of Centrifuge, Inc. on a straight 1:1 basis. The conversion is voluntary, meaning holders who prefer to stay in token form can hold or sell without being forced into the new structure.

The mechanics split along size. Holders with 100,000 CFG or more will be registered directly as shareholders. Smaller holders can access the conversion through a CoinList trust structure, which pools participants under a single legal entity to keep administrative costs manageable. No explicit conversion fees have been outlined in the proposal.

The motivation behind the redesign is candid about the limits of the current setup. The project identified token volatility, constraints on governance participation from institutional players, and barriers to raising traditional capital as the core problems CP172 is designed to solve.

The RWA context

Centrifuge has been one of the more active builders in the real-world asset tokenization space, reporting approximately $1.6B in tokenized assets on its platform. That figure includes notable instruments like JTRSY and JAAA, names recognizable to anyone watching tokenized fixed-income products develop over the past few years.

Real-world asset tokenization is the practice of putting legal claims on traditional financial instruments, think loans, bonds, or fund shares, onto a blockchain so they can be held, transferred, and settled without the usual intermediary stack.

The dual-path design, direct registration for larger holders, trust structure for smaller ones, is a practical acknowledgment that one size does not fit every participant in a token community.

For CFG holders specifically, the conversion offer changes the risk profile of what they are holding. A governance token’s value is partly speculative and partly tied to protocol activity. A share in Centrifuge, Inc. carries different exposure: claims on the company’s future revenues and assets, subject to Cayman Islands corporate law, with whatever rights the shareholder agreement provides.

The restructuring still requires additional regulatory approvals before it completes, and Centrifuge has framed the CP172 passage as clearing the internal governance hurdle rather than finishing the process.

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