Centrifuge offers to convert the token into shares

In a forum post, RWA platform Centrifuge proposed allowing eligible CFG holders to subscribe to shares in the company at a price of one CFG per share, potentially transforming token holdings into direct or indirect stakes.

What’s the scoop?

• How it works: Under the proposed restructuringthe Centrifuge Network Foundation would become a Cayman Islands company capable of issuing shares. Eligible holders with more than 100,000 CFG could hold shares directly in Centrifuge, while smaller holders could participate through a trust structure that Centrifuge intends to establish with CoinList. The conversion would be optional.
• Eligibility to be determined: Centrifuge has not yet said who would qualify. The proposal says incumbents will have to meet certain eligibility and legal requirements, with details still to be determined.
• Why equity: Centrifuge says its growing institutional activity has made using a public token more difficult given crypto volatility, regulatory exposure, governance constraints, and the cost of maintaining token liquidity. Additionally, equity could open Centrifuge to more venture capital and strategic investments.
• A major reversal: Last November, CFG holders approved a restructuring which said that all the value of the ecosystem would go through CFG and explicitly stated that there was “no stock business.” Less than a year later, Centrifuge is proposing to allow CFG holders to convert their tokens into shares. It has not yet disclosed the final ownership structure, the rights attached to the shares, or how the holders could potentially sell them.