TLDR
- Cardano’s CIP-0113 programmable token standard is now live on mainnet.
- Issuers can add KYC checks, sanctions screening, transfer limits, and freeze or seize rules to their tokens.
- The standard required no hard fork and does not give anyone the power to freeze ADA.
- Swiss group CMTA recognized the standard as equal to its CMTAT framework for certification.
- ADA traded near $0.271, up about 2.5% over 24 hours.
The Cardano Foundation has launched a new programmable token standard on the Cardano mainnet. The standard, called CIP-0113, was announced at the TOKEN2049 conference.
It lets issuers of regulated assets build compliance rules directly into their tokens. These assets include stablecoins, tokenized funds, and bonds.
The Cardano ledger checks those rules every time a token is transferred, minted, or burned. The final proposal was merged on Sept. 29 after 90 commits.
How CIP-0113 Rules Work
Issuers can require KYC and AML checks, screen for sanctioned wallets, and set transfer limits. They can also pause transfers or seize assets when the token’s own rules allow it.
For example, a regulated fund could require both the sender and the receiver to pass identity checks. A stablecoin issuer could block addresses that appear on a sanctions list.
These controls are optional modules chosen for each token. CIP-0113 does not let anyone freeze ADA or take control of existing Cardano native tokens.
Permissions can be split among different operators. This means one account does not need to hold every admin power.
“The rules have to travel with the asset and be enforced every time it moves,” said Frederik Gregaard, CEO of the Cardano Foundation.
The standard did not need a hard fork. Tokens made under it remain native Cardano assets, and issuers can update modules as rules change without altering the core standard.
Years of Review and Audits
CIP-0113 dates back to January 2023. It went through several designs before developers settled on the current model.
In July, the Foundation said vulnerabilities found during an audit had been addressed. Its September update said the first module completed an audit with “no critical or high-severity findings.”
A separate reference profile based on the Swiss Capital Markets and Technology Association (CMTA) framework has not yet had a formal third-party audit. Its repository says that audit is still planned.
CMTA has recognized CIP-0113 tokens as a smart contract equivalent to its CMTAT framework for certification purposes. This means they may be used to certify ledger-based equity securities under CMTA standards.
Wallets Eternl and GeroWallet, the explorer CardanoScan, and the developer tool BloxBean support the standard at launch. Fireblocks expects to support Cardano native tokens by March 2027.
No stablecoin, bond, or fund launched under the standard on Oct. 7. The Foundation said it will keep working with institutions, including on a securities module.
ADA traded near $0.271 on Wednesday, according to CoinGecko. That was up about 2.5% over 24 hours and 12.7% over seven days.
The token moved between $0.2642 and $0.2817 during the period, with a market cap of about $10.18 billion. Market data does not show that the launch caused the price move.
