Cardano Foundation launches CIP-0113 compliance token standard for regulated assets

The Cardano Foundation has activated CIP-0113, a new token standard on the Cardano network that gives issuers of stablecoins, funds and bonds granular control over who can hold their assets and what happens when rules are breached. Following independent security audits, the standard is live, allowing issuers to embed identity screening, sanctions checks and seizure powers directly into a token, so that compliance is enforced at the protocol layer on every transfer rather than relying on off-chain intermediaries.

The architecture places tokens inside a shared smart contract, with network nodes verifying the issuer’s chosen ruleset before any transfer is accepted. Issuers can select pre-built rule sets or define their own, and update them as regulations evolve without requiring a hard fork of the underlying network. Cardano Foundation chief executive Frederik Gregaard stated that rules must travel with the asset and be enforced each time it moves. Wallets Eternl and GeroWallet, blockchain explorer CardanoScan and developer tools from BloxBean are among the infrastructure providers supporting the launch, and the foundation has also secured recognition under the certification framework of the Capital Markets and Technology Association, a Swiss industry body whose standards are used for tokenised shares.

CIP-0113 positions Cardano alongside Ethereum’s ERC-3643, Solana’s token extensions and the XRP Ledger’s issuer-restriction capabilities, each of which already offer comparable compliance-oriented controls. One detail warrant attention for any institution considering the standard as collateral infrastructure: under its rules, an authorised party can move tokens without the holder’s consent, and the technical specification explicitly advises lending services to scrutinise those powers before accepting such tokens as collateral.