Centrifuge is a real-world asset (RWA) tokenization protocol that brings traditional finance assets — invoices, trade receivables, real estate loans, and structured credit — on-chain as collateral for DeFi lending. It's the bridge between real-world credit markets and DeFi liquidity, enabling borrowers to tokenize their assets and access on-chain capital. Centrifuge's most notable integration is with MakerDAO — it became one of the first protocols to provide real-world asset collateral backing the DAI stablecoin. MakerDAO allocated hundreds of millions in DAI to Centrifuge pools backed by tokenized real estate and trade finance assets. This demonstrated that DeFi can interact with real-world credit markets at meaningful scale. The protocol uses Tinlake (its original lending dApp) and Centrifuge App for structured credit pools. Asset originators tokenize their portfolios, create tranched pools (senior/junior), and DeFi investors can invest in these pools based on their risk appetite.
Lucas Vogelsang and Maex Ament founded Centrifuge in 2017. Tinlake launched on Ethereum for real-world asset lending. The MakerDAO integration brought hundreds of millions in real-world asset collateral on-chain. Centrifuge launched its own blockchain (Substrate-based) for asset tokenization. By 2024, Centrifuge had tokenized over $500M in real-world assets.
Asset originators tokenize real-world assets (invoices, loans, receivables) as NFTs on the Centrifuge chain. These NFTs are deposited into Tinlake or Centrifuge App pools as collateral. Investors provide DAI or USDC to pools and earn yield from real-world borrower interest payments. Pools are tranched: senior tranches get priority repayment (lower yield), junior tranches absorb first losses (higher yield). CFG token provides governance.
CFG is the native token of the Centrifuge chain used for governance, transaction fees, and on-chain operations. Staking CFG provides network security. Token supply includes inflation for block rewards.
Hundreds of millions in real-world assets backing DAI — the most significant DeFi-to-TradFi bridge.
Genuine real-world asset tokenization at meaningful scale.
Structured finance risk tranching enables different risk appetites.
One of the first and most established RWA protocols in DeFi.
Real-world assets carry default risk — DeFi investors may not be experienced in credit analysis.
Tokenized securities and lending operate in complex regulatory environments.
RWA pool positions are less liquid than standard DeFi positions.
Pool quality depends on third-party asset originators' underwriting standards.
MakerDAO allocates DAI to Centrifuge pools backed by tokenized real-world assets. This means real-world borrowers access DeFi liquidity, and DAI is partially backed by real-world credit (invoices, loans). It's one of the most significant bridges between DeFi and traditional finance.
Like traditional structured finance: senior tranches receive priority repayment with lower yields, junior tranches absorb first losses with higher yields. This lets investors choose their risk level — conservative investors take senior positions, risk-tolerant investors take junior positions for higher returns.
Centrifuge pools carry real-world credit risk — borrowers can default on loans. Smart contract risk also exists. Pool risk varies by asset type and originator quality. Unlike lending ETH on Aave, you're exposed to real-world business credit risk. Evaluate each pool independently.
View live Centrifuge price, charts, and market data on the Centrifuge detail page.
Learn how to purchase: How to Buy Centrifuge