The Cardano Foundation announced the mainnet launch of CIP-0113 on October 7, a native token standard designed for regulated assets. The standard enables issuers to freeze holdings, seize assets, restrict recipients, and apply KYC, AML, and sanctions checks directly on-chain.
How CIP-0113 Works
CIP-0113 creates a programmable token standard with built-in compliance controls enforced through the Cardano ledger during minting, burning, and transfers. The design uses Cardano's eUTXO model and requires no hard fork, keeping execution costs predictable.
The standard features a modular structure with pluggable substandards, allowing issuers to build custom modules or modify existing ones. Enforcement happens on-chain, targeting stablecoins, tokenized funds, and other regulated assets that often require compliance tools such as blocking addresses or recovering funds following legal orders.
ADA Remains Unaffected
CIP-0113 operates as an opt-in toolkit rather than a network-wide rule. ADA itself is not converted into a freezable asset, and the controls apply only to tokens whose issuers adopt the standard.
One technical consideration involves shared outputs, where a restriction on one token can affect others bundled with it. The standard addresses this through a mechanism called unfracking.
Industry Support
The Eternl and GeroWallet wallets, along with the CardanoScan block explorer, have backed the standard. The Swiss Capital Markets and Technology Association recognized CIP-0113-compliant tokens as comparable to its CMTAT framework for on-chain equity securities certification.
Community development for the standard began in 2023, with the proposal reaching the CIP repository on September 29, 2026.
