The Cardano Foundation said on Wednesday that CIP-113, a programmable token standard, is live on Cardano mainnet after several independent security audits. Issuers can now write rules such as identity checks, sanctions screening, freezes, seizures and transfer limits into their tokens.
Cardano is a so-called proof-of-stake blockchain, a network secured by holders who stake its ADA token to validate transactions. A CIP, or Cardano Improvement Proposal, is the formal document that defines a change or standard for the network.
Under CIP-113, the ledger checks an issuer’s rules every time a token is transferred, minted or burned, the foundation said in its announcement, made at TOKEN2049 in Singapore.
The tokens stay native Cardano assets, so wallets and explorers can handle them like any other token. Issuers pick rule sets, which the foundation calls modules, or write their own, and can update them as regulations change.
The standard required no hard fork, a network-wide rule change that every node operator must adopt.
“The rules have to travel with the asset and be enforced every time it moves,” Frederik Gregaard, the foundation’s chief executive, said in the release.
Wallets Eternl and GeroWallet, the explorer CardanoScan and developer-tool provider BloxBean support the launch, the foundation said.
Why it matters: issuer controls are becoming table stakes for chains that want regulated assets. A tokenized fund sold only to verified investors, or a stablecoin that must block sanctioned addresses, needs those checks wherever the token travels.
Related: Tokenized stocks and funds
CIP-113: controls that travel with the token
Cardano is not first. Ethereum has permissioned token standards such as ERC-3643, Solana offers transfer controls through its token extensions, and the XRP Ledger lets issuers restrict holders and claw back balances.
The foundation’s pitch is that CIP-113 tokens remain ordinary native assets rather than sitting inside a wrapper or a closed system. Whether issuers see that as a deciding factor will show up in who issues on it.
The trade-off sits with holders. Depending on an issuer’s rules, an authorised party could freeze or move tokens without the holder’s consent. That matters for lending protocols that might accept these tokens as collateral.
Related: Stablecoin rules in the US and EU
The scope is narrow. The controls apply only to tokens issued under CIP-113. ADA and existing native tokens are not affected.
Separately, Switzerland’s Capital Markets and Technology Association (CMTA) recognised CIP-113 programmable asset tokens as equivalent to its CMTAT smart-contract framework for the purposes of its certification scheme, which covers ledger-based equity securities.
The foundation said it is developing a securities module for regulated financial instruments as a next step. The standard’s specification is published in the Cardano Improvement Proposals repository.
ADA was trading at $0.258 as of 08:00 UTC, down about 3.4% from Tuesday’s close, according to Kraken data. The next milestone is the foundation’s securities module, for which no date has been given.
This article is for information only and is not investment advice.