The Cardano Foundation announced that CIP-0113, its programmable token standard, is live on mainnet, giving issuers a shared framework for restricting transfers and enabling freeze-and-seizure powers on native Cardano assets.

The standard, detailed in the Foundation's Oct. 7 release, targets stablecoins, tokenized funds, bonds and other regulated assets. For holders, the trade-off is explicit: a token's issuer-selected rules can permit it to be frozen or forcibly transferred without their consent.

The CIP specification frames the contrast directly: "Ordinary Cardano native tokens can move freely once minted." Before CIP-0113, projects seeking extra controls built bespoke solutions, and each wallet or application integrated them individually, the Foundation said in its March preview release.

A common validation layer

CIP-0113 provides a common framework rather than a single compliance mandate. Tokens remain native assets but sit at addresses governed by a shared validation script, with ownership identified by a separate credential. Transactions must invoke the required validation scripts or fail. The framework uses existing Cardano features and requires no hard fork, according to its implementation documentation on GitHub.

Issuers choose or write modules defining their tokens' rules. These can restrict transfers to verified holders using allowlists, block sanctioned addresses using denylists, or enable freezes and seizures, the Foundation's technical overview states. Those powers depend on the selected module; CIP-0113 does not impose one policy across every Cardano token.

Issuers can also update transfer and third-party-action rules in place. The integration guide states those changes apply to existing holders on their next spend, so buyers face more than the rules in force when they acquire a token.

Wallets and DeFi face integration work

Support is not automatic. The Foundation's integration guide instructs wallets to derive each holder's programmable address, query balances there and build transfers with the required scripts and registry references. Wallets must resolve the current rules rather than cache an issuer's original configuration.

DEXs and lending protocols need contract changes, too. Their script must occupy the token address's owner-identifying stake-credential field and authorize movements through a zero-ADA withdrawal, a mechanism for invoking validation logic. The script must support that operation and registration, and its stake address must be registered onchain.

That authorization does not automatically protect pooled assets from an issuer's seizure powers. The Foundation's control-scope documentation says the base framework can reach tokens held by lending protocols. Whether a seizure requires a protocol's consent is a module-level choice, not a framework guarantee.

Launch supporters, no named issuer

The Foundation names Eternl, GeroWallet, CardanoScan and BloxBean as launch supporters. It identifies no live asset issuer in its announcement.

The launch follows the Foundation's broader push to drive network usage. In a June interview with The Defiant, CEO Frederik Gregaard said the Foundation had begun providing liquidity to Cardano stablecoin markets, signaling a shift from protocol advocacy to active market participation.

What comes next

The Foundation says further work includes developing a securities module for regulated financial instruments, a piece of the standard still required before traditional issuers can bring compliant products onchain under a single technical umbrella. The roadmap also implies continued coordination with wallet providers and DeFi teams, whose integration timelines will determine how quickly programmable tokens reach trading and lending markets across the Cardano ecosystem.