Centrifuge Unveils V3 Upgrade to Expand Real-World Asset Market

Centrifuge, a prominent platform for unlocking on-chain finance for investors, has announced a governance proposal CP141 seeking approval to develop Centrifuge V3. V3 is an EVM-based protocol designed to advance the real-world asset (RWA) market. The upgrade will introduce key features such as modular fund infrastructure, chain abstraction, and enhanced composability with decentralized finance (DeFi).

New governance proposal CP141: Development of Centrifuge V3, a multi-chain, EVM based protocol

This proposal seeks governance approval to initiate the development of Centrifuge V3, an EVM-based protocol, to drive the next phase of growth for the RWA market. Built as a… pic.twitter.com/Z3COlStwKq

— Centrifuge (@centrifuge) February 4, 2025

Centrifuge leveraged its leadership in RWAs to develop innovative versions before launching the V3 upgrade which focused on fund security and management. Centrifuge V3 introduces an abstraction functionality that enables fund managers to run their preferred blockchain network for management and centralized liquidity from multiple EVM platforms. The protocol includes a feature that enables synchronized interactions of tokenized assets between various blockchain networks.

Centrifuge’s Strategic Shift to the EVM Ecosystem

The decision to develop Centrifuge V3 natively on the EVM is based on several strategic considerations. The total value locked in Centrifuge liquidity pools draws more than 95% of its funds from EVM chains because investors currently prioritize this technical framework. The integration will strengthen composability across DeFi platforms by adopting established EVM standards.

EVM-compatible chains provide developers and institutional partners with advanced tools and abundant on-chain money flow. The benefits of EVM compatibility enable Centrifuge to develop at scale and deliver solutions that meet expanding customer needs for assurance-compliant tokenized asset management offerings. The migration of governance infrastructure together with CFG token support will take place on an EVM chain to maintain compatibility with existing systems.

Implementation and Development Framework

The governance proposal outlines a development plan to be executed by k/factory, a software studio founded by Centrifuge’s original contributors. The team will provide updates to the decentralized autonomous organization (DAO) as the project progresses.

The new version Centrifuge V3 will enable interoperability through standard implementations of ERC7540 and ERC6909 which support flexible fund arrangements. Through its multi-chain asset management framework, the system enables asset issuers to operate across chains which makes their products more accessible to institutional investors.

The Centrifuge team implements V3 with the purpose of solidifying its leadership in RWA infrastructure services while establishing the protocol as a leader in blockchain financial innovation. The launch of Centrifuge V3 is positioned as a necessary step to meet the increasing demand for on-chain RWAs ensuring the protocol remains at the forefront of the evolving digital asset ecosystem.

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