Cardano has introduced a token standard that allows issuers of regulated stablecoins, funds and bonds to build identity checks, sanctions screening and other transfer restrictions directly into their assets. The Cardano Foundation said the standard, known as CIP-0113, is now live on the network after independent security audits.
The system is designed for financial institutions that want to issue assets on a blockchain but must comply with rules that do not apply to most freely transferable crypto tokens. According to CoinDesk, issuers can use CIP-0113 to determine who may receive a token and to freeze, seize or transfer holdings when required under the rules governing the asset.
How CIP-0113 changes token transfers
Most crypto tokens can generally be sent by anyone who controls them to any compatible wallet. Regulated assets operate under a different framework. An issuer may need to prevent transfers to a person who has not passed an identity check, or block a sanctioned address from receiving tokens.
CIP-0113 places those requirements inside the token’s operating logic. Before a transfer is accepted, the Cardano network checks whether the transaction meets the rules selected by the issuer. The controls therefore apply whenever the asset moves, including when holders send it between different wallets or services.
For example, a fund restricted to verified investors could reject a transfer to an individual who has not completed the required checks. A stablecoin issuer could also prevent its tokens from reaching an address covered by sanctions restrictions. The standard is intended to let such rules travel with the asset rather than depend only on an external compliance process.
The tokens operate through a shared smart contract, a program that controls how they can be transferred on Cardano. The computers that validate transactions enforce the selected conditions before approving a movement of the asset.
Issuer flexibility comes with holder restrictions
The Cardano Foundation, a Swiss nonprofit that supports the development of the blockchain, said issuers can use existing rule sets or create their own. They can also update those rules as regulatory requirements change.
That flexibility also means holders may accept controls that go beyond a simple payment block. Depending on how a token is configured, an authorized party may be able to freeze holdings, seize them or move tokens without the owner’s consent. The technical specification advises lending services to review these powers before accepting one of the assets as collateral.
CIP-0113 uses capabilities already available on Cardano and did not require a hard fork, which would have changed the network’s underlying rules. Cardano Foundation Chief Executive Frederik Gregaard said in a statement to CoinDesk that compliance requirements need to be enforced each time an asset changes hands.
The foundation identified Eternl and GeroWallet as supporting wallets, along with CardanoScan, a blockchain explorer, and BloxBean, a provider of developer tools. It also said CIP-0113 had received recognition under the certification framework of the Capital Markets and Technology Association, a Swiss industry body whose standards are used for issuing tokenized shares.
Cardano joins wider push for permissioned tokens
Cardano is not the first blockchain to offer controls for assets that require permissioned transfers. Ethereum has standards such as ERC-3643, while Solana provides transfer controls through token extensions. The XRP Ledger also supports tokens whose issuers can restrict holders and reclaim balances.
The development reflects the tension between two approaches to blockchain assets. Traditional crypto tokens generally emphasize open transferability, while regulated financial products may require issuers to identify investors, screen transactions and respond to legal or regulatory orders.
By putting those controls into the token itself, CIP-0113 gives issuers a way to represent assets such as funds and bonds on a public blockchain while preserving selected compliance conditions. The same design, however, reduces the level of control holders typically associate with freely transferable tokens.
Moneyiar market picture
Moneyiar market data recorded at 09:59 on Oct. 7, 2026, showed Cardano’s ADA at $0.2549181366, down 8.18% over 24 hours and up 3% over seven days.
Other listed assets were also mixed in the daily market: STABLE was priced at $0.0276231953, down 1.63% in 24 hours and 3.41% over seven days; SEI stood at $0.0684831562, down 7.08% over 24 hours and 7.58% over seven days; and FUN was at $0.008179113, up 1.89% over 24 hours and 14.9% over seven days.
The launch of CIP-0113 concerns the infrastructure for issuing and transferring regulated tokens. It does not itself indicate that a particular stablecoin, fund or bond has been issued using the standard.
