Cardano introduces a token standard that enables issuers to freeze, seize, and restrict regulated digital assets.
Regulation & Gov ·
The Cardano Foundation launched CIP-0113, a token standard enabling issuers of regulated stablecoins, funds, and bonds to restrict recipients and freeze or seize holdings according to specified rules. The standard enforces compliance checks including identity verification and sanctions screening on every transfer without requiring a network hard fork, and issuers can customize rules and update them as regulations change. Tokens built on this standard keep restrictions embedded in a shared smart contract that validators check before accepting any transaction, including transfers between different wallets or services. Depending on configured rules, authorized parties may move tokens without holder consent, a capability lending services are advised to evaluate before accepting such tokens as collateral.