by Centrifuge Labs
Quick Fact
Centrifuge bridges real-world assets to DeFi by enabling asset originators to tokenize RWAs and access liquidity from protocols like MakerDAO and Aave.
Centrifuge is a decentralized protocol that brings RWAs—like invoices, real estate, and trade receivables—into DeFi. Asset originators can tokenize these off-chain assets into ERC-721 NFTs and mint Tinlake pools to raise capital on-chain from individual and institutional lenders.
Using Centrifuge, businesses can tap into global liquidity by offering tokenized RWAs as collateral. Through integrations with protocols like MakerDAO, Aave, and the Centrifuge-native Tinlake marketplace, issuers can borrow stablecoins (like DAI) against tokenized assets, enabling low-cost, transparent financing.
Centrifuge operates its own parachain on Polkadot for high throughput and scalability, while maintaining interoperability with Ethereum-based DeFi via bridges. Asset transactions, identity verification, and compliance logic can be enforced across chains, making Centrifuge a robust infrastructure layer for regulated RWA financing.