Three rival blockchains already give a token’s issuer some way to block or claw back a holder’s assets. On Wednesday Cardano joined them.
The Cardano Foundation said CIP-0113, a standard for what it calls programmable tokens, is live on the main network after independent security audits. No hard fork was required, CoinDesk reported.
The standard builds compliance checks into the token itself. Before a transfer goes through, the ledger tests it against rules the issuer has chosen, such as identity verification or sanctions screening. An issuer can restrict who receives a token, freeze holdings and seize them.
The intended users are regulated ones. A fund manager could reject transfers to unverified investors, and a stablecoin issuer could block payments to sanctioned addresses. Rule sets can be updated as regulations change.
Because the rules travel with the token, they apply in every wallet and service that handles it. Eternl and GeroWallet support the standard, as does the explorer CardanoScan.
This is catch-up. Ethereum has ERC-3643, Solana added transfer controls through token extensions, and the XRP Ledger supports issuer clawback. Regulated issuers expect these controls, and Cardano could not offer them natively.
What did not arrive with the announcement was an issuer. No stablecoin, fund or bond was named as launching on the standard, so its first real test has no date.
There is also the older argument, which a feature like this reopens on any chain. A token that someone else can seize is a different thing from the one early users signed up for.
