Cardano Foundation Launches CIP-0113 Token Standard for Compliance

The Cardano Foundation announced the launch of CIP-0113 on mainnet during TOKEN2049 on October 7, 2026. This new standard allows issuers of native Cardano tokens to integrate compliance rules directly into their assets, including the ability to restrict transfers, freeze holdings, or seize tokens.

Unlike off-chain compliance solutions, CIP-0113 enforcement occurs at the ledger level. The Cardano blockchain validates these rules during every minting, burning, or transfer event. The standard does not require a hard fork and maintains the chain's eUTXO model with predictable execution costs.

The design is modular, consisting of a core standard paired with pluggable substandards. This allows issuers to develop custom logic for KYC, AML, and sanctions screening. Tooling support is already available through wallets like Eternl and GeroWallet, as well as the CardanoScan block explorer.

The Swiss Capital Markets and Technology Association has recognized tokens compliant with CIP-0113 as comparable to its CMTAT framework, which is used for certifying on-chain equity securities in Switzerland. Development and auditing for the standard began in 2023, with the proposal officially merged into the Cardano Improvement Proposals repository on September 29, 2026.

The standard is primarily intended for regulated assets such as tokenized funds and stablecoins. Because Cardano’s eUTXO model can bundle multiple tokens into a single output, the standard includes an unfracking mechanism to prevent restricted assets from impacting other tokens or ADA held in the same output.

While these controls provide issuers with the ability to manage assets, they introduce a trade-off for holders who must trust the issuer's actions. The Foundation noted that these controls only apply to tokens where the issuer opts into the standard, and ADA itself remains unaffected.