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The Cardano Foundation says CIP-0113 is live after independent security audits. The standard lets issuers apply identity and sanctions checks to transfers and, depending on the rules, restrict, freeze, seize or move tokens. It uses existing Cardano capabilities and did not require a hard fork.
The Cardano Foundation has launched CIP-0113, a token standard that lets issuers of regulated assets set transfer conditions and, under specified rules, restrict, freeze, seize or move holdings. The standard is live on Cardano following independent security audits, the foundation said, and does not require a hard fork.
CIP-0113 is designed for assets such as stablecoins, funds and bonds. Issuers can require identity checks, screen transactions against sanctions restrictions and prevent transfers to recipients who do not meet the asset’s rules. The checks apply whenever tokens move, including between holders using different wallets or services, according to the source report.
The rules operate through a shared smart contract that governs transfers, with computers validating transactions enforcing the selected conditions. Issuers may choose existing rule sets or write their own and update them as regulations change. The Cardano Foundation said the design uses capabilities already available on the network rather than changing its underlying rules.
The foundation named Eternl and GeroWallet, blockchain explorer CardanoScan and developer-tools provider BloxBean among the services supporting the launch. It also announced recognition under a certification framework run by the Capital Markets and Technology Association, a Swiss industry body. The source report does not specify which assets have already adopted CIP-0113.
Issuer Controls Reach Cardano Tokens
The standard addresses a practical obstacle for financial firms considering tokenized assets: regulated products often need controls that ordinary freely transferable crypto tokens do not have. A fund may be limited to verified investors, while a stablecoin issuer may need to block transactions involving sanctioned addresses or comply with an order to freeze assets. CIP-0113 makes such restrictions part of the token’s transfer process.
That flexibility also changes what holding an asset can mean. Authorized parties may be able to move tokens without a holder’s consent, depending on the rules chosen by the issuer. This is different from a simple failed transfer: controls may reach the holder’s balance itself. The technical specification advises lending services to assess these powers before accepting a token as collateral, since a lender’s ability to rely on that collateral may be affected by issuer actions.
The launch establishes a technical option, not evidence that regulated assets are already widely using it or that compliance requirements are satisfied automatically. Issuers still need to define appropriate rules and operate within relevant laws. For users, the terms attached to each token will matter as much as the network on which it runs.
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How CIP-0113 Enforces Rules
Most crypto tokens allow a holder to send assets to another wallet without the token itself checking whether the recipient has passed identity screening or is legally permitted to receive them. Regulated financial products can face different requirements. Issuers may need to restrict access to eligible investors and act on sanctions or legal orders, making unrestricted transfers unsuitable for some offerings.
CIP-0113 puts issuer-selected conditions into a Cardano smart-contract process so they are checked before a transfer is accepted. Cardano Foundation chief executive Frederik Gregaard said the rules should “travel with the asset and be enforced every time it moves.” The approach uses existing network capabilities, so the launch did not require a hard fork, the report said.
Issuer controls are not unique to Cardano. The report cites Ethereum’s permissioned-token standards, including ERC-3643, transfer-control features in Solana token extensions, and XRP Ledger tokens that can restrict holders or claw back balances. The Cardano Foundation’s separate certification announcement relates to a Swiss industry framework used for issuing tokenized shares; the source does not establish that the certification itself guarantees regulatory approval for any particular token.
“The rules have to travel with the asset and be enforced every time it moves.”
— Frederik Gregaard, chief executive of the Cardano Foundation
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Adoption and Issuer Powers
The announcement establishes that CIP-0113 is live, but the source material does not name any stablecoin, fund or bond already issued under the standard. It is also unclear how many issuers intend to use it, what assets may launch first, or how broadly the listed wallets and tools will support specific CIP-0113 features.
The precise controls will depend on each issuer’s chosen rules. The announcement does not detail who can authorize a seizure or transfer, what review or appeal process a holder could use, or how the rules would apply in particular legal disputes. Independent security audits were reported, but the source does not identify the auditors or provide their findings. Holders and service providers will need to examine each token’s terms rather than assume all CIP-0113 assets have identical restrictions.
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Token Launches Will Test Adoption
The next practical measure will be whether issuers deploy assets using CIP-0113 and whether wallets, explorers and development services implement its controls in usable ways. Issuers that adopt it will need to publish their transfer conditions and explain which parties can freeze or move holdings. The source announcement gives no schedule for specific token launches or further integrations.
For users and lenders, the relevant next step is to review the rules attached to any asset before receiving, transferring or accepting it as collateral. Wider adoption, and how the controls work in real-world regulatory or court cases, remain unreported.
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Key Questions
What is Cardano CIP-0113?
CIP-0113 is a Cardano token standard that lets issuers define rules for who can receive an asset and how it can be transferred or controlled.
Can issuers freeze or seize tokens?
Yes. The reported standard allows issuers to build in powers to restrict, freeze, seize or transfer holdings under specified rules. The powers available depend on the rules selected for a particular token.
Does CIP-0113 require a Cardano hard fork?
No. The source report says the standard uses existing Cardano capabilities and did not require a hard fork.
Are regulated tokens already using the standard?
The announcement says CIP-0113 is live, but the source material does not identify specific stablecoins, funds or bonds already issued with it. Adoption by issuers remains unclear.
What should token holders check?
Holders should review the asset’s rules, including who may restrict transfers or move tokens. The specification also advises lending services to examine these powers before accepting a token as collateral.
Source: rss
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