Cardano's CIP-0113 token standard is live on mainnet, letting issuers build KYC, sanctions checks, freeze-and-seize and transfer limits into Cardano tokens.
Key Facts
The Cardano Foundation said on Wednesday that CIP-0113, a programmable token standard, is live on the Cardano mainnet after multiple independent security audits.
The standard lets issuers of stablecoins, tokenized funds and bonds build KYC checks, sanctions screening, freeze-and-seize powers and transfer restrictions into native tokens.
Switzerland's Capital Markets and Technology Association has recognized the standard as a smart contract equivalent to its CMTAT framework for its certification scheme.
The Cardano (ADA) network now supports a token standard that lets issuers of regulated assets freeze, seize and restrict their tokens, with the rules enforced by the blockchain's ledger on every transfer.
The Cardano Foundation said the standard, CIP-0113, is live on mainnet following independent security audits. It made the announcement at the TOKEN2049 conference in Singapore on Wednesday.
What Cardano's CIP-0113 Token Standard Does
The standard targets issuers of stablecoins, tokenized funds, bonds and other regulated assets. They can build KYC and anti-money laundering checks, sanctions screening, freeze-and-seize powers and transfer restrictions directly into their tokens, the foundation said.
The Cardano ledger enforces those rules every time a token is transferred, minted or burned. Tokens issued under the standard remain native Cardano assets so that "the whole ecosystem can work with it," according to Cardano Foundation senior blockchain architect Giovanni Gargiulo.
"Regulators have been clear about what tokenised financial assets need. The rules have to travel with the asset and be enforced every time it moves," Cardano Foundation CEO Frederik Gregaard said.
Swiss Standards Body Recognizes Cardano Token Framework
The launch also comes with recognition from a Swiss industry group. The Capital Markets and Technology Association, or CMTA, recognized CIP-0113 programmable asset tokens as a smart contract equivalent to its CMTAT standard for its certification scheme, the foundation said.
The foundation did not name any issuers that have committed to using the standard.
Other networks have also been building infrastructure for tokenized assets. Base added compliance tools for issuers in its Cobalt upgrade last week, and the Solana Foundation launched a delivery-versus-payment settlement standard for tokenized assets on Monday.
This article contains links to third-party websites or other content for information purposes only ("Third-Party Sites"). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author's [company's] own and do not necessarily reflect those of CoinMarketCap.
