Centrifuge governance has approved CP172, allowing the real-world asset protocol to move forward with plans to restructure around tokenized corporate equity. The proposal would create a pathway for eligible CFG holders to exchange their tokens for tokenized shares, potentially replacing the protocol’s existing token-based value structure with an equity model.
Centrifuge confirmed the vote through its official announcement, describing the plan as an unprecedented token-to-equity transition. The governance approval does not itself convert CFG into shares, with implementation still dependent on corporate restructuring, legal requirements and additional approvals.
CP172 has passed.
This is the first time in history for a token to convert to tokenized equity.
Pending necessary approvals and legal analysis, Centrifuge will move forward with the proposed restructuring. pic.twitter.com/JX0vVz9kIM
— Centrifuge (@centrifuge) September 10, 2026
CFG Holders Could Receive Tokenized Equity
Under CP172, the Centrifuge Network Foundation would need to restructure from a Cayman Islands foundation company into an exempted company capable of issuing shares. Eligible CFG holders would then be offered the opportunity to subscribe for one share for each CFG token contributed, subject to applicable eligibility, KYC and regulatory requirements.
The resulting shares would themselves be tokenized, providing holders with a digital record representing their direct or indirect equity interest. Legal ownership would continue to be reflected through the company’s formal shareholder register or applicable trust arrangements. The model therefore combines blockchain-based representation with conventional corporate ownership records rather than replacing legal share registries entirely.
Centrifuge argues that the restructuring could remove barriers that its current public-token model creates for institutional investment and corporate capital formation. The proposal aims to establish a single value-accrual structure around equity instead of maintaining separate incentives between CFG holders and future shareholders.
Legal Approval Remains the Next Hurdle
The governance vote is only one stage of the process. CP172 still requires approval from the Centrifuge Network Foundation board and completion of the corporate, legal and regulatory work needed to restructure the entity and issue shares. No specific date has been established for CFG holders to begin converting tokens into equity.
Eligibility could also prevent some holders from participating directly. Centrifuge’s documentation makes clear that any equity subscription must comply with applicable laws and onboarding requirements. That means the final mechanics will need to address how different categories of CFG holders, including those using centralized exchanges, are treated, an issue already generating additional governance discussion.
If implemented, CP172 would represent a significant change in Centrifuge’s economic structure, but the project’s claim that it would be the first token-to-tokenized-equity conversion should be treated as Centrifuge’s characterization rather than an independently established industry first. The immediate milestone is governance approval, while the decisive step will be turning the proposal into a legally executable equity conversion for eligible CFG holders.
