Centrifuge to meet demand for Real World Assets with liquidity pools

Centrifuge liquidity pool testnets have launched on Arbitrum and Base, with plans to release on other networks in the future


sutlafk/Shutterstock modified by Blockworks


Centrifuge, a protocol for decentralized financing, is launching real-world asset liquidity pool testnets on a pair of popular layer-2 networks.

The testnets will go live on Arbitrum and Coinbase’s Base, and the team says that discussions are underway with other layer-1s and layer-2s. The announcement was made during a company event held Tuesday in New York City. 

The idea behind on-chain financing for RWAs is to provide borrowers with access to liquidity without the need to extensively interact with intermediaries.

This means that any RWA providers, or what the team calls Asset Originators, can tokenize their assets and use them as collateral in Centrifuge’s liquidity pools. Investors can then provide liquidity to these assets and earn yield.

Centrifuge’s liquidity pools can be deployed on any EVM-compatible blockchain. 

Lucas Vogelsang, co-founder and CEO of Centrifuge, told Blockworks that the company is “prioritizing launches based on ecosystem demand for RWA, committed TVL for Centrifuge pools, and their ability to offer unique value for RWA.”

At launch, these liquidity pools are designed only to support total-value-locked (TVL) on the network in which they are deployed, but bridging tokens across chains is not out of the question.

“RWA has long been an industry that caters to a different set of users than what crypto native traders have traditionally been interested in. We believe we will continue to see networks build towards offering unique advantages tailored to RWA,” he said.

Aside from launching pool testnets on Base and Arbitrum, three new RWA pools will go live on the Centrifuge app.

These include Anemoy Capital, a Web3 native asset manager that will bring tokenized T-bills onto the platform; New Silver, a real estate mortgage fund that will increase credit lines from Maker to $50 million; and Flowcarbon, an on-chain carbon credit tokenization platform that will launch its second pool on Centrifuge in collaboration with Celo.

Read more: TradFi, DeFi convergence continues through tokenizing real-world assets

Centrifuge’s pools will draw real-time price feeds from oracle provider Chronicle Labs. This is largely because of Chronicle Labs’ role as an oracle infrastructure provider for Maker, an existing partner of Centrifuge.

Pricing data will be sourced from markets where the underlying assets trade, Vogelsang told Blockworks. 

“For liquid credits, such as Treasury bill pools, this data is virtually accurate 24/7, whereas less liquid instruments will offer less frequently available data,” Vogelsang said.

Institutional moves

Centrifuge says it’s building out RWA financing efforts with other companies in the industry as well. 

For example, Centrifuge is working with Circle on on-and-off ramping for USDC onto Mauve — a permissioned, non-custodial exchange specifically designed for trading RWAs. 

It is also working on a “Proof of Portfolio” project to provide collateral transparency for MakerDAO’s RWAs. 

“Proof of Portfolio is a project that enables independent verification of a Centrifuge portfolio by integrating third-party attestations of off-chain and private data,” Vogelsang said. “This allows Centrifuge pools to offer the highest degree of transparency through improved auditability and accountability.”

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.


Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself


While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space


Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow


Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving


BlackRock’s iShares Bitcoin Trust continues to see daily positive net flows, though its inflow total for a single day hit a new low Wednesday


Binance is making moves, from receiving a new license in Dubai to switching its SAFU fund to USDC