The Cardano Foundation officially released CIP-0113, the main network programmable token standard

The Cardano Foundation announced the launch of the CIP-0113 programmable token standard on the main network

The Cardano Foundation announced at the TOKEN2049 conference that Cardano's new programmable token standard CIP-0113 is now officially launched on the Cardano main network. This upgrade allows issuers of stablecoins, tokenized funds, bonds and other regulated assets to embed compliance features such as KYC and AML reviews, sanctions screening, freezes, seizures and transfer restrictions directly into their tokens. Cardano Ledger enforces these compliance rules every time a token is transferred, minted, or destroyed.

Seamless token combination

According to the Cardano Foundation, the CIP-0113 standard was developed jointly with Cardano community experts after multiple independent security audits. The foundation did not disclose the names of the specific institutions participating in the audit. Importantly, the implementation of this standard did not result in a hard fork on the Cardano blockchain.

Tokens created under the CIP-0113 framework are still Cardano's native assets. Compliance logic is embedded in tokens through Cardano's Extended UTXO (EUTXO) model, allowing wallets, block browsers, and decentralized applications to treat it as any other Cardano asset. The new system promises to provide consistent and predictable execution costs regardless of how many inputs a transaction involves.

Publishers can choose from a modular compliance rule set (called "modules") or develop their own custom modules. These rules can be updated based on changing regulations without having to modify the core standards themselves. The release is supported by multiple Cardano ecosystem tools, including Eternl, GeroWallet, CardanoScan and BloxBean.

Frederik Gregaard, CEO of the Cardano Foundation, explains this approach: "Programmable tokens on Cardano are still native assets on the ledger, and compliance is enforced by the network itself rather than by the wrapper or closed system. This step is designed to attract institutions considering using blockchain for tokenization, such as banks, fund managers and stablecoin issuers, and to shift the focus of discussion from 'What can Cardano do' to 'What can Cardano do now'."

Industry Adoption and Technical Background

The foundation emphasizes that international financial organizations, including the Bank for International Settlements (BIS) and the International Monetary Fund (IMF), believe that programmable capabilities are the key to future tokenized financial markets.

In addition, the Cardano Foundation and the Swiss Capital Markets and Technology Association (CMTA) announced new developments in certification work. CMTA now recognizes that Cardano's CIP-113 programmable asset tokens are equivalent to its CMTAT smart contract standard, making these tokens eligible for certification of ledger-based equity securities in accordance with CMTA Guidelines.

Small dictionary: The Swiss Capital Markets and Technology Association (CMTA) is a Geneva-based non-profit industry body dedicated to developing standards for the use of distributed ledger technology (DLT) in financial markets, including a framework for tokenized securities and asset tokens.

Earlier this year, the foundation released the programmable token platform and CIP-0113 reference implementation via open source and publicly previewed it on Cardano's Preview test website. At the beginning of its release, the foundation emphasized that smart contracts must be independently audited before the standard is fully put into production.

Looking forward, the foundation plans to continue to work with projects and institutions that use the standard and continue to develop dedicated securities modules for regulated financial assets. With CIP-0113 launched on the main network, Cardano asset issuers can build regulatory compliance directly into their tokens, simplify the tokenization process, and dynamically respond to changing laws and regulations.