Centrifuge is one of the most established RWA protocols, having pioneered on-chain private credit since 2020. The protocol connects real-world borrowers (asset originators) with DeFi lenders through its Tinlake platform.
How It Works
- Asset originators (lending companies) create pools on Tinlake
- Each pool represents a specific credit strategy (e.g., invoices, consumer loans, trade finance)
- Investors supply DAI or USDC to earn yield
- MakerDAO is the largest lender, with over $2B deployed through Centrifuge
Key Pools
- BlockTower Credit — Trade finance and private credit
- ConsolFreight — Logistics and supply chain finance
- New Silver — Real estate bridge loans
- Harbor Trade — Trade finance receivables
DeFi Integration
Centrifuge’s integration with MakerDAO/Sky is the deepest of any RWA protocol. The MakerDAO community has approved multiple Centrifuge pools, providing institutional-grade capital and validation.
UK Accessibility
Centrifuge is accessible to UK investors through the Tinlake interface. KYC may be required depending on the pool and jurisdiction. Some pools are restricted to professional investors.
Risks
- Pool concentration risk — Each pool has specific credit risk exposure
- Smart contract risk — Across Centrifuge and integrated protocols
- Liquidity risk — Tinlake pools have lock-up periods
- Oracle risk — Price feeds from Chainlink
Verdict
Centrifuge is the leading protocol for on-chain private credit. Its integration with MakerDAO provides institutional validation and deep liquidity. UK investors seeking diversified RWA exposure beyond treasuries should consider Centrifuge for private credit allocation.
Disclaimer: Private credit investments carry risk including default and illiquidity. This review is for educational purposes.