Cardano launches CIP-0113 token controls on mainnet

The Cardano Foundation said CIP-0113 went live on Cardano mainnet on Oct. 7, enabling issuers to build transfer restrictions and freeze or seizure rules into regulated tokens, according to the Foundation’s launch announcement. The standard targets stablecoins, tokenized funds, bonds and other regulated assets that may need identity checks, sanctions screening or controls on who can hold them.

How do CIP-0113’s controls work?

The Cardano ledger checks a token’s rules whenever it is transferred, minted or burned. Issuers can choose existing rule sets, called modules, or write their own and update them as regulations evolve; the Foundation said the standard required no hard fork.

Under the CIP-0113 specification, token-specific scripts define transfer checks and any third-party actions. Those actions can include freezing, seizure or forced transfers without the holder’s permission, but the standard itself does not determine who can trigger them; that depends on the token’s chosen rules.

Which Cardano tokens are affected?

The new controls apply to programmable tokens issued under CIP-0113. The specification describes ordinary Cardano native tokens as freely transferable once minted, while programmable tokens require a script to approve a change of owner. The rules therefore depend on the token and its modules, rather than applying network-wide.

The Foundation said CIP-0113 launches with support from wallets Eternl and GeroWallet, explorer CardanoScan and developer-tool provider BloxBean. It also said it will continue working with projects and institutions, including on a securities module for regulated financial instruments.

Source material

• Foundation’s launch announcement — cardanofoundation.org
• CIP-0113 specification — cips.cardano.org