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      Centrifuge Completes Governance Vote for Token-to-Equity Conversion

      Centrifuge has successfully passed a governance vote known as CP172, allowing holders of its CFG tokens to convert their tokens into shares of a newly formed entity, Centrifuge, Inc., based in the Cayman Islands. This marks a significant milestone as it is the first instance of a cryptocurrency token being directly convertible into tokenized equity, following a vote conducted from September 3 to September 10, 2026.

      The restructuring involves transforming the Centrifuge Network Foundation into a for-profit company, enabling it to issue equity shares. CFG token holders can exchange their tokens on a 1:1 basis for shares in Centrifuge, Inc. Participation in this conversion is voluntary, with larger holders of 100,000 CFG tokens or more being registered directly as shareholders, while smaller holders can convert through a trust structure managed by CoinList.

      This initiative aims to address challenges such as token volatility and barriers to institutional investment, which have limited the project's growth. Centrifuge has been active in the real-world asset tokenization sector, reporting approximately $1.6 billion in tokenized assets, including various fixed-income products. The conversion to equity shares alters the risk profile for CFG holders, linking their investments to the company's future revenues and assets under Cayman Islands corporate law. Regulatory approvals are still needed to finalize the restructuring process.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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