1 min read
Add as a preferred source on Google

Cardano Activates CIP-0113 to Add Compliance Rules to Native Tokens

The Oct. 7 mainnet activation allows issuers to embed KYC, sanctions screening and transfer controls in stablecoins, tokenized funds and bonds.

Mentioned assets
Metallic token beside a sealed compliance document folder / TokenPost.ai
Metallic token beside a sealed compliance document folder / TokenPost.ai

Cardano activated the CIP-0113 programmable-token standard on its mainnet Oct. 7, enabling issuers to place compliance rules directly on native assets intended for stablecoins, tokenized funds and bonds.

The standard allows token controls covering know-your-customer checks, anti-money-laundering requirements, sanctions screening, freezes, confiscation and transfer restrictions. The Cardano ledger applies those conditions during transfers, minting and burning.

CIP-0113 tokens remain native Cardano assets under the extended unspent transaction output model. Ownership changes depend on successful script execution, allowing rules attached to an asset to be checked when a transaction moves it.

The activation did not require a hard fork. Existing Cardano infrastructure, including wallets, block explorers and applications, can handle the tokens. Eternl, GeroWallet, CardanoScan and BloxBean are among the ecosystem projects supporting the rollout.

The update gives issuers a way to add compliance-oriented controls while retaining Cardano’s existing native-asset framework.

Simon Yoon

Reporter

Simon Yoon reports on blockchain technology for TokenPost. Send corrections or tips to info@tokenpost.com.

Loading…