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- Cardano activated the CIP-0113 programmable token standard on mainnet to let issuers add regulatory and compliance controls directly to assets.
- The framework allows issuers to enforce KYC checks, block sanctions, and optionally freeze or force-transfer tokens without a hard fork.
- The Swiss Capital Markets and Technology Association recognized CIP-0113 assets for ledger-based equity securities certification purposes.
Cardano has activated a programmable token standard that lets issuers add KYC checks, sanctions screening, transfer restrictions and asset-freezing controls directly to tokens issued on the network.
The Cardano Foundation announced on Oct. 7 that CIP-0113 is live on mainnet after independent security audits. The framework targets regulated stablecoins, tokenized funds, bonds, and other financial assets whose issuers need control over who can hold or transfer them.
Issuers Can Add KYC, Sanctions and Forced-Transfer Rules
CIP-0113 lets token creators attach custom rules that must be satisfied whenever an asset is transferred. Issuers can restrict ownership to verified users, block sanctioned addresses or impose transfer limits based on regulatory requirements.
The framework can also support third-party actions such as freezing holdings, seizing tokens or forcing transfers without the holder approving the transaction. Those powers are optional and are not automatically attached to every programmable token. Each issuer determines which controls apply and who is authorized to use them.
Compliance Rules Run Directly On Cardano Without a Hard Fork
Programmable tokens remain Cardano native assets rather than wrapped tokens issued through a separate network layer.
The blockchain checks the relevant rules when tokens are transferred, minted or burned. Issuers can use predefined modules or create their own compliance logic and update those rules as legal requirements change.
The framework uses existing Cardano native-token and smart-contract functionality, allowing CIP-0113 to launch without a hard fork.
Swiss Standards Group Recognizes CIP-0113 for Securities Certification
The Swiss Capital Markets and Technology Association has recognized CIP-0113 programmable assets as a smart contract equivalent to its CMTAT standard for certification purposes.
The recognition means qualifying Cardano tokens can be used when seeking certification for ledger-based equity securities under the association’s framework.
The Cardano Foundation is also developing a dedicated securities module for regulated financial instruments.
CIP-0113 remains listed as “Proposed” in Cardano’s improvement proposal registry even though the Foundation’s reference implementation is now live on mainnet.
The next test will be issuer adoption, with support already available through ecosystem tools including Eternl, GeroWallet, CardanoScan and BloxBean.
