{"id":23661,"date":"2026-03-19T08:21:29","date_gmt":"2026-03-19T08:21:29","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2026\/03\/19\/what-is-centrifuge-cfg-the-rwa-protocol-bridging-tradfi-defi\/"},"modified":"2026-03-19T08:21:29","modified_gmt":"2026-03-19T08:21:29","slug":"what-is-centrifuge-cfg-the-rwa-protocol-bridging-tradfi-defi","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2026\/03\/19\/what-is-centrifuge-cfg-the-rwa-protocol-bridging-tradfi-defi\/","title":{"rendered":"What Is Centrifuge (CFG)? The RWA Protocol Bridging TradFi & DeFi"},"content":{"rendered":"

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For investors exploring decentralized finance, what is Centrifuge (CFG) is a common question as more attention shifts toward bringing real-world tangible assets into blockchain-based finance. Centrifuge is a project that <\/span>connects traditional finance with DeFi<\/b> by enabling assets such as invoices, real estate, and loans to be tokenized and funded on-chain.\u00a0<\/span><\/p>\n

This guide explains how the Centrifuge protocol works, the role of the centrifuge token, the problems it solves, and how both businesses and investors benefit from using it.<\/span><\/p>\n

What Is Centrifuge (CFG)?<\/b><\/h2>\n

Centrifuge (CFG) is a blockchain project designed to <\/span>bring <\/b>real-world assets into decentralized finance<\/b><\/a>. It allows businesses to convert assets such as invoices, mortgages, and royalties into digital tokens that can be financed on blockchain-based platforms.<\/span><\/p>\n

Rather than going through banks or traditional lenders, companies can access funding directly from investors in the DeFi ecosystem.<\/span><\/p>\n

At its core, the Centrifuge protocol acts as a bridge between traditional finance and blockchain. It enables asset originator businesses to unlock liquidity from assets that are usually slow or difficult to finance.<\/span><\/p>\n

For example, a company waiting 60 days for invoice payments can use Centrifuge to access funds almost immediately by tokenizing that invoice and offering it to investors.<\/span><\/p>\n

Who Built a Centrifuge?<\/b><\/h3>\n

Centrifuge was <\/span>founded in 2017 by a German team<\/span><\/a> led by <\/span>Lucas Vogelsang (CEO) and Martin Quensel (COO)<\/b>, both with strong backgrounds in fintech and supply chain finance. They previously worked at Taulia, where they focused on improving access to working capital for businesses.\u00a0<\/span><\/p>\n

Along with contributors like <\/span>Markus Ament and Philip Stehlik<\/b>, the Centrifuge team built the protocol to connect real-world assets with decentralized finance and help businesses unlock funding more efficiently. Its CEO, Bhaji Illuminati, has positioned the project as the infrastructure layer that will power the next phase of institutional DeFi.<\/span><\/p>\n

How Does Centrifuge Work?<\/b><\/h2>\n

Centrifuge connects businesses that need funding with investors who want to earn returns. It does this by turning real-world assets into digital tokens that can be financed on blockchain networks.<\/span><\/p>\n

Businesses<\/b><\/h3>\n

Businesses, also known as asset originators, use Centrifuge to tokenize their off chain assets. These assets can include:<\/span><\/p>\n