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In a forum post, RWA platform Centrifuge proposed letting eligible CFG holders subscribe for company shares at a price of one CFG per share, potentially turning token holdings into direct or indirect equity interests.
What’s the scoop?
- How It Works: Under the proposed restructuring, the Centrifuge Network Foundation would become a Cayman company that can issue shares. Eligible holders with 100,000+ CFG could hold shares directly in Centrifuge, while smaller holders could participate through a trust structure Centrifuge intends to establish with CoinList. Conversion would be optional.
- Eligibility TBD: Centrifuge has not yet specified who will qualify. The proposal says holders will need to meet certain eligibility and legal requirements, with the details still TBD.
- Why Equity: Centrifuge says its growing institutional business has made using a public token more difficult given the crypto volatility, regulatory exposure, governance constraints, and the cost of maintaining token liquidity. Moreover, equity could open Centrifuge to more VC and strategic investment.
- A Major Reversal: Last November, CFG holders approved a restructuring that said all ecosystem value would flow through CFG and explicitly stated there was “no equity business.” Less than a year later, Centrifuge is proposing to let CFG holders convert their tokens into equity. It has not yet disclosed the final ownership structure, the rights attached to the shares, or how holders could eventually sell them.
