tokenization

Centrifuge is one of the most paradoxical projects in the RWA sector: its product is growing, institutional partners are joining, and the protocol is generating fees—yet the token captures almost none of that value.
According to #defi Llama, Centrifuge’s TVL has reached approximately $1.63 billion. The protocol operates across ten networks, with around 78% of its liquidity concentrated on Ethereum. Its annualized fees are estimated at $59.8 million, while protocol revenue stands at approximately $5.44 million.
The product itself is genuinely strong. Centrifuge provides infrastructure for tokenizing real-world financial assets and works with major institutions such as Janus Henderson, Apollo, New York Life Investment Management, and S&P Dow Jones Indices.
However, protocol success does not necessarily translate into token success.
The Main Problem With CFG
Despite generating tens of millions of dollars in fees, revenue distributed to CFG holders remains at zero.
CFG currently has no:
Fee sharing for token holdersRegular buybacksToken-burning mechanismDirect relationship between TVL growth and demand for #cfg
At the same time, token inflation continues, while newly issued CFG used to finance the ecosystem creates additional selling pressure.
This creates a fundamental disconnect: Centrifuge can grow as an infrastructure company, but CFG holders barely participate in that growth economically.
The market has already reflected this imbalance. CFG is currently trading near $0.13–$0.14, approximately 94.7% below its $2.58 all-time high.
CP172 Changes the Entire Story
On August 17, the team introduced CP172, a proposal exploring the conversion of CFG tokens into company equity.
The preliminary structure includes:
1 CFG = 1 share in the future Centrifuge, Inc.Holders of more than 100,000 CFG could be registered as direct shareholdersSmaller positions could be pooled through a CoinList trust structureKYC/AML verification would be mandatoryThe shares would likely be considerably less liquid than the publicly traded token
The team is effectively acknowledging that CFG was designed for a different version of Centrifuge. Its current institutional business may find the token structure restrictive when raising capital and working with new partners.
So, Where Is the Logic?
It becomes clear once we separate product value from token value.
Centrifuge may be one of the leading tokenization platforms, supported by a strong team and major institutional clients. But without fee sharing, buybacks, or another value-accrual mechanism, business growth does not necessarily create demand for CFG.
The token’s weak performance does not automatically mean the product has failed. Instead, the market is showing that a governance token without meaningful economic rights is not the same as equity in a growing company.
CP172 proposes a radical solution: instead of fixing the tokenomics, replace the token with equity.
What Investors Should Watch Next
Three questions now matter most:
What legal and economic framework will govern the conversion?Will former CFG holders gain rights to the company’s future profits?Will there be a secondary market for the new shares?
Until the final terms are published, CFG remains a high-risk bet on the outcome of a corporate restructuring—not simply an investment in a growing RWA protocol.
The Centrifuge case could become a precedent for the entire crypto market: if a token does not capture part of the value being created, the institutional business behind it may eventually choose equity instead.
$CFG #RWA #Tokenization

When building a financial product, the easiest solution isn’t always the most meaningful one.
When exploring tokenized equities, creating a synthetic product that simply tracks the price of a traditional stock could be the simpler path.
But as DG from the CPMO team explained in the premiere episode of Inside Binance, Binance chose to pursue a more complex approach — one designed around the ability to redeem tokenized stocks for the underlying shares.
The idea goes beyond simply tracking price movements.
By connecting tokenized assets with underlying equities, this approach aims to create a bridge between traditional financial markets and digital-asset infrastructure.
For users familiar with traditional markets, this can offer a more recognizable path into a tokenized environment, while highlighting an important principle in product design:
Complexity can be worth it when it serves a meaningful user need.
The bigger question for tokenization isn’t only how closely a digital asset can follow an underlying price.
It’s also about what that digital representation actually connects to.
Listen to the complete Inside Binance Episode 1 on Binance Square Audio to hear DG explain the thinking behind this approach:
https://www.binance.com/en/square/audio/replay?id=43818743070026
#Binance #InsideBinance #Tokenization #Web3
@Binance Angels