The Cardano Foundation has put CIP-0113 live on the network, introducing a token standard aimed at regulated assets such as stablecoins, funds and bonds. The framework allows issuers to decide who can receive tokens and, where their rules permit, freeze, seize or transfer holdings.

According to the foundation, the standard applies compliance checks to every transfer, including identity verification and sanctions screening, while using capabilities already available on Cardano. The rollout did not require a hard fork and followed independent security audits.

Controls built into the token standard

CIP-0113 is designed so that compliance rules are enforced before a transfer is accepted. Rather than leaving checks to a separate service, the restrictions are embedded into the token’s operating logic, allowing the network to evaluate whether a transaction meets the issuer’s requirements each time tokens move.

That means the controls are not limited to one platform or intermediary. The rules apply across transfers between holders, including when different wallets or services are involved. The foundation said this can be used to stop transfers to recipients who have not completed required identity checks or to block delivery to sanctioned addresses.

Issuers can tailor and update the rule set

Under the standard, issuers can choose from existing rule sets or create their own. They can also update those rules as regulations change, giving regulated asset issuers a way to adapt compliance requirements over time without changing the underlying network.

The same flexibility also means token holders may face stronger issuer control than with unrestricted crypto assets. The foundation said authorized parties can, under defined rules, move tokens without a holder’s consent, reflecting the needs of products that must operate within legal and compliance frameworks.

No hard fork required

The foundation said the system works through a shared smart contract that holds the tokens and checks compliance conditions before transfers are completed. Because it relies on functionality Cardano already supports, the launch did not require a protocol-level network upgrade.

Cardano Foundation, a Swiss nonprofit that supports Cardano’s development, said CIP-0113 went live after independent security audits. The announcement positions the standard as infrastructure for tokenized financial products that need issuer controls built directly into onchain transfers.

Early tooling and the next step

Several ecosystem tools were named as supporting the launch, including the Eternl and GeroWallet wallets, the CardanoScan block explorer, and developer-tools provider BloxBean.

The immediate next confirmed step is broader use of the standard by issuers that need regulated transfer controls. As presented by the foundation, CIP-0113 is intended for assets where compliance checks, recipient restrictions and the ability to intervene in holdings are required features rather than exceptions.

Source: www.coindesk.com