Centrifuge governance approves voluntary CFG-to-equity conversion at 1:1 ratio via Cayman Islands restructuring, marking a structural precedent for RWA tokenization.
Regulation & Gov ·
Centrifuge governance proposal CP172 has secured passage, enabling CFG token holders to voluntarily exchange their tokens for tokenized equity shares in a newly structured Cayman Islands entity. The vote showed 73.3 million CFG tokens (98.53 percent) in favor, with 990,500 tokens (1.33 percent) opposed and 100,700 tokens (0.14 percent) abstaining. The exchange operates at a 1:1 basis—one token surrendered yields one equity share—and is facilitated directly through the Centrifuge platform subject to eligibility criteria and board approval.
The restructuring converts the Centrifuge Network Foundation, Inc. into a Cayman Islands exempted company, with token holders gaining economic and governance participation rights under local law. Holders possessing 100,000 CFG or more register directly as members; smaller holders access the conversion through a CoinList trust arrangement. Those choosing not to convert may retain or trade their existing CFG tokens. The proposal was not structured as a regulated securities offering and remains subject to final legal review and necessary approvals.
The mechanism establishes a structural model where a governance token transitions into an equity-like instrument, a precedent not previously executed at this scale in tokenized networks. Outstanding questions include timing of final approvals, specific eligibility thresholds beyond the 100,000-token threshold mentioned, and how secondary markets for the new equity shares will operate once issued.