Centrifuge said governance proposal CP172 has passed, opening the way for what the protocol described as the first token-to-tokenized-equity conversion in its history. The move would allow eligible CFG holders to voluntarily exchange tokens for tokenized shares once required approvals and legal analysis are complete.
Under the proposal posted on the governance forum, the Centrifuge Network Foundation would be reorganized and re-registered as Centrifuge, Inc., an exempted limited liability company in the Cayman Islands, for the purpose of issuing equity. Eligible holders would be able to convert at a 1 CFG to 1 share ratio through the Centrifuge platform, with no additional fee.
The proposal also sets different participation routes based on holdings. Qualified holders with 100,000 CFG or more would be registered directly as shareholders, while those with less than 100,000 CFG would participate through a trust structure proposed in cooperation with CoinList. Centrifuge said the conversion would remain optional, and non-participating holders could keep their tokens or sell them on the open market. The protocol also said it would seek to maintain market liquidity during the conversion period. Legal guidance was provided by Ogier, with advisory support from Galaxy Digital Labs LLC and The Tokenized Asset Coalition.
Centrifuge said on X that governance proposal CP172 has passed. The protocol said the move represents the first conversion of tokens into tokenized equity in its history.
It added that the proposed reorganization will move ahead after necessary approvals and legal analysis are completed.
Foundation restructuring and equity issuance plan
According to the proposal on the governance forum, the Centrifuge Network Foundation is set to be reorganized and re-registered as Centrifuge, Inc., an exempted limited liability company in the Cayman Islands, in order to issue equity.
The proposal says eligible CFG holders will be able to exchange 1 CFG for 1 share of tokenized equity through the Centrifuge platform, with no additional fees.
Different routes for large and small holders
Qualified holders with at least 100,000 CFG would be registered directly as shareholders. Those holding less than 100,000 CFG would be expected to take part through a trust structure proposed with CoinList.
The conversion is voluntary. Holders who do not participate may continue to hold their tokens or sell them on the open market. Centrifuge also said it will work to maintain market liquidity during the conversion period.
Legal and advisory support
Ogier provided legal guidance for the proposal. Galaxy Digital Labs LLC and The Tokenized Asset Coalition served as advisors.
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