This initiative is designed for regulated stablecoins, funds, and bonds, enabling issuers to implement identity verification and sanctions compliance directly into the assets.
By Shaurya MalwaOct 7, 2026, 12:11 a.m. EDT2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- The Cardano Foundation has introduced CIP-0113, a new token standard that empowers issuers of regulated assets to restrict recipients and manage the freezing, seizing, or transferring of holdings based on specific regulations.
- This standard mandates compliance checks for each transfer, including identity verification and sanctions screening, without necessitating a hard fork of the Cardano network.
- Issuers have the flexibility to select or tailor rules and adjust them in response to regulatory changes, although holders may face controls permitting authorized parties to transfer tokens without their approval.
The Cardano Foundation has unveiled a token standard enabling issuers of stablecoins, funds, and bonds to dictate who can access their assets while also allowing for the freezing or seizing of holdings when mandated by regulations.
On Wednesday, the Swiss nonprofit organization, which supports Cardano's development, confirmed that this new standard, known as CIP-0113, is operational on the network, following successful independent security audits.
Typically, most cryptocurrencies can be transferred freely by their holders to any wallet. However, banks and asset managers involved in regulated markets cannot permit such unrestricted transfers.
They must ensure that tokens are not sent to individuals who have not undergone identity verification or to sanctioned addresses, and they must retain the ability to freeze assets when required by regulatory or legal authorities.
This new standard integrates these compliance measures directly into the token, ensuring that the network verifies the applicable rules before any transaction is executed.
A fund exclusively sold to verified investors could use this standard to block a transfer to someone who has not completed the necessary identity checks. Similarly, a stablecoin issuer could prevent tokens from being sent to a sanctioned account. These restrictions would apply to any token movement, regardless of the wallets or services involved.
The architecture maintains tokens within a shared smart contract, a program on Cardano that dictates how they can be transferred. Automated systems check transactions against the established rules before authorizing a transfer. This approach utilizes existing capabilities on Cardano and does not require a hard fork, which would alter the foundational rules of the network.
Frederik Gregaard, CEO of the Cardano Foundation, stated, "The rules must accompany the asset and be enforced with every transfer."
Issuers can opt for pre-existing sets of rules or create custom ones, with the ability to update them as regulatory frameworks evolve. The foundation identified wallets like Eternl and GeroWallet, blockchain explorer CardanoScan, and developer-tool provider BloxBean as part of the launch's supporting infrastructure.
Other blockchains have implemented similar functionalities. Ethereum features permissioned token standards like ERC-3643, Solana has incorporated transfer controls via token extensions, and the XRP Ledger allows token issuers to enforce restrictions on holders and reclaim balances.
Possessing one of these tokens may also entail accepting powers that extend beyond merely blocking transactions. Depending on the established rules, authorized entities could transfer tokens without obtaining consent from the holder. The technical specifications instruct lending platforms to scrutinize these powers before accepting a token as collateral.
In addition, the foundation announced its recognition under the certification framework of the Capital Markets and Technology Association, a Swiss industry organization whose standards are utilized for the issuance of tokenized shares.
As a note, Cardano’s ADA has experienced a decline of 4.5% in the last 24 hours amidst a broader market downturn.
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The Definitive Stablecoin Landscape Series: Asia Pacific
The Definitive Stablecoin Landscape Series: Asia Pacific
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
By CoinDesk ResearchSep 15, 2026Commissioned byRippleAs stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
Why it matters:
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
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