Cardano launches CIP-0113 standard for regulated token compliance

The Cardano Foundation has launched CIP-0113, a new programmable token standard now live on the Cardano mainnet. Designed primarily for regulated assets such as stablecoins, tokenized bonds, and investment funds, the standard allows issuers to embed compliance rules directly into the logic of native tokens.

Under this framework, issuers can implement automated Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, sanctions screening, and transfer restrictions. The standard also grants issuers the ability to freeze or seize specific assets if required by legal or regulatory mandates. These rules are enforced by the Cardano ledger during the minting, burning, or transferring of tokens, rather than relying on external off-chain servers.

The update was implemented without requiring a hard fork, maintaining the tokens as native assets within the network's existing infrastructure. The Swiss Capital Markets and Technology Association (CMTA) has recognized the framework, noting its comparability to the CMTAT certification system for blockchain-based securities. While the standard provides significant tools for institutional finance, it is important to note that these controls apply only to tokens specifically issued under CIP-0113 and do not affect the native ADA cryptocurrency.