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Cardano puts freeze and seizure controls into token standard

Cardano’s CIP-0113 standard is live on mainnet, letting issuers encode compliance checks and controls into regulated tokens that the ledger enforces at transaction time.

The Top Crypto Editors 2 min read

Cardano puts freeze and seizure controls into token standard

Can Cardano token issuers freeze or seize assets? They can build those controls into tokens using CIP-0113, which the Cardano Foundation announced on Oct. 7 is live on mainnet. The standard matters for issuers of regulated assets that need transfer rules enforced by the ledger.

According to the Cardano Foundation’s launch announcement, the rules can include KYC and anti-money-laundering checks, sanctions screening, freezes, seizures and transfer restrictions. The ledger checks those rules when a token is transferred, minted or burned. CIP-0113 tokens remain native Cardano assets and use its extended UTXO model; the Foundation says deployment required no hard fork.

Does CIP-0113 give every issuer the same seizure power?

No: each token’s behavior depends on the scripts its creator registers. The CIP specifies a token-specific “third-party” script that defines who may take actions such as seizure or forced transfers, and those actions can run without the holder’s permission. Its transfer script separately checks whether an ordinary transfer meets that token’s rules.

That distinction means the standard enables these controls but does not make every Cardano asset freezeable. An issuer can choose existing rule modules or write its own, according to the Foundation, and the CIP’s registry binds a token’s policy to its configured logic. Those details determine which controls apply and who can invoke them.

What does the standard change for regulated assets?

It gives stablecoin, fund and bond issuers a way to put compliance conditions into the asset’s on-chain transfer path. As CoinDesk reported, a fund could reject transfers to unverified investors, while a stablecoin issuer could block transfers to sanctioned addresses. The rules apply when tokens move between holders, including across different wallets or services.

The Foundation also said the Swiss Capital Markets and Technology Association recognized CIP-0113 programmable asset tokens as equivalent to its CMTAT smart-contract framework for certification purposes. It said the recognition may support certification of ledger-based equity securities under CMTA standards. The next thing to watch is whether issuers adopt the standard and which token-specific controls they deploy.

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