Centrifuge, a platform for tokenizing real-world assets, has opened a 14-day consultation on a proposal that would let eligible CFG holders exchange their tokens for shares in a newly restructured company.
- The proposal, known as CP172, represents a reversal from the structure Centrifuge adopted less than a year ago.
- In October 2025, Centrifuge said there would be a "single value accrual mechanism: CFG."
- "To reiterate: the entire team is aligned around CFG, there is no equity business," Centrifuge co-founder and CEO Bhaji Illuminati wrote in the earlier proposal.
- CFG holders subsequently approved it through an on-chain vote.
But Centrifuge now says operating with a public token creates "regulatory exposure," limits institutional participation and raises the cost of maintaining liquidity and market infrastructure. It also said the token structure blocks some venture capital and strategic investment.
Bhaji Illuminati
Under CP172, the Centrifuge Network Foundation would be re-registered from a Cayman Islands foundation company without shareholders into an exempted company capable of issuing equity.
Eligible holders would pay one CFG for each share in Centrifuge Inc. The shares would be tokenized, although ownership would remain recorded through the company's shareholder register or a trust arrangement.
- Holders with at least 100,000 CFG (approximately $16,000 at current prices) would be entered directly into the register.
- Smaller holders would participate through a trust that Centrifuge intends to establish with CoinList.
- The proposal says the team, community and partners would all receive the same class of shares.
Holders who don't convert could retain or sell their CFG, while Centrifuge said it would support market liquidity during the conversion period.
But the one-for-one exchange rate doesn't establish what either side of the transaction is worth.
Centrifuge hasn't disclosed the company's proposed valuation, its fully diluted capitalization table or the voting, dividend and liquidation rights attached to the shares.
It has also not explained whether the tokenized equity would be transferable, which countries would be eligible or what utility and liquidity would remain for CFG after the conversion window closes.
The plan still requires approval from the foundation's board, a tokenholder vote and completion of the legal restructuring. Centrifuge said the proposal was prepared with legal guidance from Ogier and advisory support from Galaxy Digital Labs and the Tokenized Asset Coalition.