A new programmable-token standard lets stablecoin and fund issuers enforce compliance rules on the Cardano network. It cannot touch ADA or existing tokens, and no major issuer has committed yet.
Cardano has switched on the kind of compliance tooling that regulated asset issuers say they need before putting stablecoins, funds or bonds on a public blockchain. The open question is who will use it first.
The Cardano Foundation said Wednesday at the Token2049 conference in Singapore that CIP-0113, a programmable-token standard, is live on mainnet. The foundation said the rules are "enforced by the network itself" and that "no hard fork" was required.
The standard includes a "freeze and seize" module that gives issuers an on-chain denylist and the ability to freeze or seize their own tokens. The code has been audited, though the foundation's documentation notes that "an audit does not by itself guarantee production safety." The proposal was merged into Cardano's main improvement-proposal repository in late September.
Foundation Chief Executive Frederik Gregaard said compliance rules must "travel with the asset."
What it does and does not do
The controls apply only to tokens issued under the new standard, and only if the issuer opts in. They cannot be used to freeze ADA, Cardano's native currency, or any existing token. That design addresses a common concern about forced transfers on decentralized networks, while still giving regulated issuers the levers they are required to have.
Wallets and tools including Eternl, GeroWallet, CardanoScan and BloxBean support the standard, and Switzerland's Capital Markets and Technology Association has recognized it alongside its own CMTAT framework.
The upgrade brings Cardano roughly level with rival networks. Ethereum has ERC-3643, Solana has token extensions and the XRP Ledger has clawback features, all aimed at the same institutional market for tokenized real-world assets.
No stablecoin, fund or bond has yet launched on Cardano under the standard. The economic impact depends on adoption by issuers.
ADA fell 4.3% to about $0.256 early Wednesday, in line with the broader crypto market.
What to watch
The first regulated issuer to launch on CIP-0113 will determine whether the standard is a catch-up feature or the start of real asset migration to Cardano.