Cardano has launched CIP-0113 on its mainnet, giving issuers of regulated digital assets more control over how their tokens can be transferred.
The new system allows issuers to add rules such as KYC requirements, transfer limits, sanctions checks, and even freeze or seizure functions to specific tokens.
The proposal was merged on Sept. 29 after years of development, testing, audits, revisions, and community feedback. The final version was merged after 90 commits.
The Cardano Foundation said CIP-0113 is designed for assets such as regulated stablecoins, tokenized funds, and bonds. The rules are checked directly by the Cardano blockchain whenever a programmable token is transferred, minted, or burned.
Importantly, CIP-0113 does not give anyone the power to freeze ADA or control every token on Cardano. These compliance features are optional and apply only to tokens that are created using the programmable framework.
For example, an issuer could require both the sender and receiver of a token to pass KYC checks. A stablecoin issuer could also block wallets connected to sanctions lists.
Other available functions can allow authorized operators to pause transfers or move tokens without the holder’s approval if those rules were included when the asset was created.
The Cardano Foundation says these controls are designed to help regulated assets carry their compliance rules with them. This means the rules can continue to apply even after the token moves away from the platform where it was originally issued.
CIP-0113 does not require a Cardano hard fork. Instead, it uses existing Cardano technology and adds a validation system that checks whether a particular token transfer follows its programmed rules.
Different tokens can use different compliance settings. Issuers can also use existing modules or create their own rules as their requirements change.
Several Cardano ecosystem platforms, including Eternl, Gero Wallet, CardanoScan and BloxBean, are supporting the rollout.
Institutional support is also developing. Fireblocks expects to support Cardano Native Tokens by March 2027, which would allow its institutional customers to custody, send and receive assets issued on Cardano.
CIP-0113 has been in development since January 2023. The proposal went through several design changes before developers settled on the current system.
Security reviews were also carried out during development. The Cardano Foundation said vulnerabilities found during an audit were addressed, while its September update reported that the first programmable-token module completed an audit without any critical or high-severity findings.
The Foundation also said the Capital Markets and Technology Association has recognized CIP-0113 Programmable Asset Tokens as a smart-contract equivalent to its CMTAT framework, which is designed for tokenized financial assets.
The launch comes as Cardano looks to attract more regulated assets and institutional use.
ADA was trading around $0.271 at the time of writing. CoinGecko showed the token up roughly 2.5% over 24 hours and 12.7% over seven days.
However, there is no clear evidence that the CIP-0113 launch itself caused the recent price movement.
For now, the main significance of CIP-0113 is that Cardano now gives token issuers a way to build compliance rules directly into their assets while keeping those tokens as native Cardano assets.
