Cardano has shipped a token standard that lets issuers of regulated assets freeze, seize, and restrict their tokens — controls that run against crypto’s permissionless default but are precise
Cardano has shipped a token standard that lets issuers of regulated assets freeze, seize, and restrict their tokens — controls that run against crypto’s permissionless default but are precisely what banks, fund managers, and stablecoin issuers require. The Cardano Foundation said at TOKEN2049 on Oct. 7 that the standard, CIP-0113, is live on the Cardano mainnet after multiple independent security audits, with the network itself enforcing issuer rules on every transfer, mint, and burn.
Per the foundation’s announcement, the standard lets issuers build KYC and AML checks, sanctions screening, freeze and seize powers, and transfer restrictions directly into native Cardano tokens. That raises a pointed question for a network long marketed as decentralized and community-governed: do issuer freeze-and-seize powers undercut that pitch, or are they the compliance bridge that regulated tokenization cannot do without?
CIP-0113 attaches compliance logic to the token itself rather than to an application or a wrapper. Tokens issued under the standard remain native Cardano assets built on the network’s extended UTXO model, so wallets, explorers, and applications treat them like any other asset, and transaction costs stay predictable. Issuers pick modular rule sets, called modules, or write their own, and can update them as regulation changes without a hard fork or any change to the core protocol.
The scope matters: the freeze, seize, and clawback-style powers apply only to tokens issued under the standard. They do not touch ADA or existing native assets, and they do not hand the Cardano Foundation control over the network. “The rules have to travel with the asset and be enforced every time it moves,” Cardano Foundation CEO Frederik Gregaard said in the announcement, adding that programmable tokens remain native assets “with compliance enforced by the network itself rather than by a wrapper or a closed system.”
The powers CIP-0113 grants are the opposite of “anyone can send to anyone”: depending on the rules, an authorized party can move tokens without the holder’s consent, and the specification tells lending services to review those powers before accepting such a token as collateral. That is a genuine trade-off, but one other major networks have already accepted. Ethereum has the ERC-3643 permissioned token standard, Solana added transfer controls through token extensions, and the XRP Ledger supports issuer clawback and holder restrictions.
The institutional case is concrete. The Bank for International Settlements and the International Monetary Fund have both identified programmability — hard-coding compliance into an asset — as central to the next generation of tokenized markets. The Swiss Capital Markets and Technology Association, whose standards are used for issuing tokenized shares, has recognized CIP-113 Programmable Asset Tokens as a smart-contract equivalent to its CMTAT framework, trimming due-diligence burden for Swiss ledger-based securities. The standard is aimed squarely at the issuers Cardano wants to attract, not at everyday ADA holders.
The launch builds on Cardano’s institutional push, which already includes opening native tokens to institutional custody through Fireblocks and a Petrobras pilot tracking renewable jet fuel and diesel. Wallets Eternl and GeroWallet, explorer CardanoScan, and developer-tool provider BloxBean support the new standard at launch. The Cardano Foundation said it will keep working with projects and institutions, including on a securities module for regulated financial instruments. The real test is adoption: whether a stablecoin issuer, fund, or bond program actually issues under CIP-0113, and whether Cardano’s community accepts that the network now ships a native way to freeze and seize.
