The Cardano Foundation launched CIP-0113, a token standard that gives issuers of stablecoins, funds and bonds direct control over asset movement—including the ability to freeze or seize holdings and reject transfers to unverified wallets.
Unlike most crypto tokens with open transferability, regulated assets on-chain require stricter controls. Issuers must prevent tokens from reaching unverified buyers or sanctioned addresses and need the capability to freeze assets on regulatory or court order. CIP-0113 bakes these rules into the token itself; Cardano validators enforce them before any transfer completes.
The standard works through a shared smart contract that governs token movement. Issuers choose from existing rule sets or create custom ones—a fund sold exclusively to verified investors can reject transfers to unverified wallets; a stablecoin issuer can block sanctioned addresses. These restrictions persist across all token movements, whether between individual wallets or through services.
The implementation required no hard fork and leverages existing Cardano capabilities. Frederik Gregaard, chief executive of the Cardano Foundation, said the rules must travel with the asset and be enforced every time it moves. Issuers retain flexibility to update rules as regulatory requirements shift.
Wallets Eternl and GeroWallet, blockchain explorer CardanoScan and developer-tool provider BloxBean already support the standard.
Cardano joins other blockchains with similar permissioned token standards: Ethereum's ERC-3643, Solana's token extensions and the XRP Ledger's issuer-restricted tokens all offer comparable controls.
One caveat: depending on configured rules, authorized parties could move tokens without holder consent—a power that extends beyond payment blocking. The technical specification advises lending services to examine issuer powers before accepting such tokens as collateral.
The Cardano Foundation also earned recognition under the certification framework of the Capital Markets and Technology Association, a Swiss industry body that establishes standards for tokenized shares.
