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Cardano gives token issuers power to freeze, seize and restrict assets

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11 new reports

Cardano’s CIP-0113 standard is live on mainnet and lets issuers of regulated assets build compliance rules into tokens. The standard covers checks such as identity screening, sanctions controls, transfer limits, and, in some cases, freeze, seize, and forced-transfer functions. It keeps the assets native to Cardano rather than moving them to a separate system.

Key claims & sources

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The standard also lets issuers restrict recipients and apply identity checks, sanctions controls and other transfer rules directly inside the asset.
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CIP-0113 adds programmable transfer rules for regulated assets, including compliance checks, freezes and forced transfers, and it does so without a Cardano hard fork.
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The Cardano Foundation launched CIP-0113 on mainnet on Wednesday at TOKEN2049.
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CIP-0113 lets issuers of stablecoins, tokenized funds, bonds and other regulated assets add KYC and AML checks, sanctions screening, freeze and seize powers, and transfer restrictions to their tokens.
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Cardano’s new framework keeps these programmable tokens as native Cardano assets, with the ledger enforcing the rules when tokens are transferred, minted or burned.
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Wallets, DEXs and lending protocols need integration changes to handle assets that can be subject to issuer-selected freezes and forced transfers.
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The modular design lets different issuers apply different compliance policies, and CMTA has recognized the implementation for its Tokenized Shares certification framework.

What it means

Issuers of regulated assets on Cardano are the immediate group affected, because the new token standard gives them a way to build identity checks, sanctions screening and transfer rules into the asset itself. Wallets, DEXs and lending protocols also face a direct change in how they handle those assets, since they need to integrate with issuer-selected freeze and forced-transfer functions.

Before this rollout, the same assets did not carry these issuer-defined controls inside the token logic on mainnet. Now programmable tokens remain native Cardano assets, and the ledger applies the rules when they are transferred, minted or burned, while the standard also avoids a hard fork.

Market reaction i

CardanoADA it is the asset of the company or protocol in the event
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12data points

Coverage timeline

Every piece in order, with the time its news medium declares — if it is not believable we use ours and say so — and what it added to what was already known at that point. Arriving first is not the same as adding something.

first
Oct 7 04:11
+1 h 12 m
Oct 7 05:23
Cryptonews.com adds
Brings into the story: ADA, CIP
+1 h 35 m
Oct 7 05:46
crypto.news echo
No new facts: letting, limits, add
+5 h 54 m
Oct 7 10:05
Unchained echo
No new facts: transaction, completion, newsletter; with quotes
+6 h 49 m
Oct 7 11:00
crypto.news context
Its angle: allowlists, entity, public
+8 h 50 m
Oct 7 13:01
Crypto Economy echo
No new facts: announcement, distinction, circulating; with quotes
+10 h 44 m
Oct 7 14:55
CR Cryptopolitan adds
Adds $67M, with quotes
+11 h 9 m
Oct 7 15:20
AMBCrypto echo
No new facts: unaffected, finance, place
+12 h 21 m
Oct 7 16:32
The Defiant echo
No new facts: integration, protocols, changes
+14 h 24 m
Oct 7 18:35
Crypto News Flash echo
No new facts: implementation, specification, architecture
+21 h 48 m
Oct 8 02:00
BeInCrypto echo
No new facts: substandards, enforcement, pluggable
+1 d 10 h
Oct 8 14:38
Cardano echo our clock
No new facts: cardanoscan, gerowallet, equivalent

Has this happened before?

WhenWhat happenedFigure
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