What is Centrifuge?
Centrifuge is the leading platform for tokenizing real-world assets. It brings institutional-grade securities — treasury bills, private credit, CLOs, equity indices — onchain, making them usable in DeFi while maintaining regulatory compliance.
Why real-world assets matter
Most DeFi yield comes from crypto-native sources: lending demand, trading fees, token emissions. These sources are volatile and often circular — crypto earning yield from crypto activity.
Real-world assets introduce external yield. A tokenized treasury bill earns interest from US government debt. A tokenized CLO earns from corporate loan payments. These cash flows exist regardless of what crypto markets are doing.
The RWA market has crossed $25 billion. But most of these assets remain locked — accessible only to permissioned wallets, confined to single chains, unable to interact with DeFi protocols natively.
The deRWA framework
Centrifuge's deRWA (decentralized RWA) framework changes this. Assets tokenized through deRWA are issued with full regulatory compliance but designed to be composable with DeFi from day one.
This means a tokenized asset can serve as collateral on lending protocols, trade on DEXs, or integrate with yield strategies — things that permissioned RWA tokens typically can't do.
deSPXA is tokenized S&P 500 exposure, managed by Janus Henderson under license from S&P Dow Jones Indices. Unlike tokenized ETFs, it can be minted and redeemed at NAV by authorized participants. Tradeable 24/7 — the first time equity index exposure has been liquid around the clock.
How tokenization works
An asset originator — like a fund manager or credit facility — works with Centrifuge to create a tokenized representation of their asset. The underlying asset is held by a regulated entity, while the token represents ownership claims.
Pricing comes from Net Asset Value (NAV) calculations, typically updated daily. Authorized participants can mint new tokens by depositing underlying assets, or redeem tokens for the underlying.
For non-US users, deRWA assets can be accessed through DeFi protocols without the restrictions that typically limit RWA token distribution.
Clearstar's role
Clearstar is a launch partner for Centrifuge's RWA expansion into DeFi lending. We've deployed an RWA cluster on Euler Base that includes deSPXA and deJAAA (tokenized AAA-rated CLOs) as collateral options.
Every asset listed goes through our due diligence process: governance review, smart contract verification, oracle configuration checks. Assets that meet our standards get listed; those that don't, don't.
Risks to understand
Issuer risk exists because tokenized assets depend on the underlying asset manager operating properly. If the issuer fails, token holders face the same risks as traditional investors in that asset.
Regulatory risk varies by jurisdiction. Some users may face restrictions on accessing certain RWA tokens based on their location.
Redemption risk means converting tokens back to underlying assets may take time — it's not instant like swapping crypto tokens.