Cardano Foundation Launches Token Standard for Regulated Assets

The Cardano Foundation has released a new token standard, CIP-0113, designed to support regulated assets such as stablecoins, bonds, and funds. The standard allows issuers to build identity checks, sanctions screening, and transfer rules directly into the tokens themselves.

By integrating these controls, issuers can restrict who is eligible to receive assets and maintain the ability to freeze or seize holdings when required by court or regulatory orders. These rules remain active throughout the lifecycle of the token, including during transfers between different wallets or services.

The implementation functions through a shared smart contract on the Cardano network. According to the Cardano Foundation, the design leverages existing network capabilities and does not require a hard fork. Frederik Gregaard, chief executive of the Cardano Foundation, stated that the rules must travel with the asset and be enforced every time it moves.

The standard is now live following independent security audits. It has received recognition under the certification framework of the Capital Markets and Technology Association, a Swiss industry body. Several ecosystem tools, including Eternl, GeroWallet, CardanoScan, and BloxBean, have announced support for the launch.

This development brings Cardano in line with other networks that offer similar permissioned token standards, such as Ethereum’s ERC-3643, Solana’s token extensions, and the XRP Ledger. The technical specification advises lending services to evaluate the powers granted to issuers before accepting these tokens as collateral, as authorized parties may be able to move assets without the holder's consent.

Cardano’s ADA token was down 4.5% over the past 24 hours, tracking a broader decline in the crypto market.