The Cardano Foundation has launched CIP-0113, a token standard that lets issuers of stablecoins, funds and bonds restrict who can receive their assets and freeze, seize or transfer holdings when rules require it. The Swiss nonprofit, which supports Cardano's development, announced Wednesday that the standard is live on the network following independent security audits.

The design targets regulated assets. Most crypto tokens can move from any holder to any wallet; banks and fund managers putting regulated instruments onchain cannot allow that. They must screen recipients against identity requirements and sanctions lists, and they must be able to freeze assets when a regulator or court orders it.

How does the standard enforce compliance?

CIP-0113 builds those controls into the token itself. The network checks the issuer's rules before any transfer goes through, applying identity and sanctions screening on every movement — including transfers between holders using different wallets or services.

A fund sold only to verified investors could use the standard to reject a transfer to someone who has not completed identity checks. A stablecoin issuer could block its tokens from reaching a sanctioned address.

Technically, the tokens live in a shared smart contract on Cardano that controls how they move. Computers validating transactions enforce the chosen rules before accepting a transfer. The design uses capabilities already available on Cardano and required no hard fork — no change to the network's underlying rules.

"The rules have to travel with the asset and be enforced every time it moves," Cardano Foundation CEO Frederik Gregaard said in a statement to CoinDesk.

What powers do issuers gain over holders?

Issuers can select existing rule sets or write their own, and update them as regulations change. That flexibility comes with a trade-off for holders. Depending on the rules attached to a given token, an authorized party could move tokens without the holder's consent — a power that extends beyond simply blocking a payment.

The technical specification addresses this directly: it tells lending services to examine those issuer powers before accepting a token as collateral. The instruction matters for DeFi protocols that would otherwise treat all tokens of the same denomination as fungible.

The foundation named wallets Eternl and GeroWallet, blockchain explorer CardanoScan and developer-tool provider BloxBean among the ecosystem tools supporting the launch.

Where does Cardano sit in the compliance-token market?

Cardano is entering a field with established incumbents. Ethereum supports permissioned token standards such as ERC-3643, Solana added transfer controls through its token extensions, and the XRP Ledger has long supported tokens whose issuers can restrict holders and claw back balances.

The Cardano Foundation also announced recognition under the certification framework of the Capital Markets and Technology Association, a Swiss industry body whose standards are used for issuing tokenized shares. That recognition positions the standard for use in Swiss-regulated issuance workflows rather than purely decentralized finance.

The launch comes as tokenized funds and regulated stablecoins push blockchains toward issuer-controlled asset design. Whether CIP-0113 attracts issuers away from Ethereum's and Solana's established compliance tooling will depend on wallet support, auditor uptake and integration by the lending protocols that must now assess which tokens carry transfer restrictions before accepting them as collateral.