Cryptocurrency exchange Coinbase has made a "seven-figure" investment in Centrifuge, a blockchain project focused on real-world asset (RWA) tokenization, and has selected it as the main tokenization partner for its Ethereum layer-2 network, Base. This partnership aims to bring traditional financial instruments like exchange-traded funds (ETFs), loan funds, and structured products onto the blockchain.
Following the announcement, the price of Centrifuge's native token, CFG, experienced a sudden surge, gaining 10% in the past 24 hours. The move underscores Coinbase's deepening strategy to bridge traditional finance and decentralized finance (DeFi).
Centrifuge will now serve as the core infrastructure provider on Base, offering an end-to-end suite of tokenization tools, asset structuring solutions, yield APIs, and compliance systems—all integrated with DeFi protocols. Base's Head of DeFi, Zachary Frey, noted that Centrifuge was chosen after a thorough evaluation for its scalable infrastructure and institutional focus.
While the exact financial details remain undisclosed, Centrifuge CEO Bhaji Illuminati highlighted that Coinbase has a history of backing projects that align with its long-term vision. Centrifuge's leadership also emphasized that integration with Coinbase's distribution network will enable the compliant scaling of high-quality assets, further advancing RWA adoption.
