Cardano Foundation launches CIP-0113 token standard for compliance controls
The new standard lets issuers of Cardano native tokens freeze, seize and restrict assets, with the ledger itself enforcing the rules
Cardano token issuers now have a set of controls that would make a bank compliance officer smile. The Cardano Foundation announced on October 7, 2026, at TOKEN2049 that CIP-0113 is live on mainnet.
The standard lets issuers build compliance rules directly into Cardano’s native tokens. That includes the ability to freeze assets, seize them and restrict who can receive them.
What CIP-0113 actually does
CIP-0113 lets issuers attach rules to their tokens covering KYC and AML checks, sanctions screening and transfer restrictions. Issuers can also freeze holdings or seize them outright.
The key detail is where enforcement happens. These rules are not handled by an off-chain server or a company dashboard. The Cardano ledger validates them whenever a token is minted, burned or transferred.
The upgrade also does not require a hard fork. Tokens stay native Cardano assets, operating under the chain’s eUTXO model, and the Foundation says execution costs remain predictable.
A modular design built to change
CIP-0113 is not one rigid rulebook. It uses a core standard paired with pluggable substandards that handle token-specific logic.
Issuers can write their own custom modules or tweak existing ones over time.
Tooling support is already in place. Wallets Eternl and GeroWallet, along with the block explorer CardanoScan, now support CIP-0113 functionality.
The news moving money, markets, and the world—before your day starts.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
On the regulatory side, the Swiss Capital Markets and Technology Association (CMTA) has recognized CIP-0113 compliant tokens as comparable to its CMTAT framework. CMTAT is used to certify equity securities on-chain in Switzerland.
The road to mainnet
Community development and audits on the standard began in 2023.
The proposal was formally merged into the official Cardano Improvement Proposals repository on September 29, 2026. Barely a week later, the Foundation announced it live on mainnet during TOKEN2049.
CIP-0113 is designed primarily for regulated assets such as stablecoins and tokenized funds, products where issuers typically need the legal ability to block sanctioned addresses or claw back funds.
The UTXO wrinkle
Cardano’s eUTXO model works a bit like cash stuffed into envelopes, where a single output can hold several different tokens plus ADA.
That creates a potential problem. If an issuer restricts one asset sitting in a shared output, the other tokens or ADA in that same envelope could get caught up in the restriction.
CIP-0113 addresses this through what it calls an “unfracking” mechanism. Still, the issue introduces potential challenges for wallets and DeFi protocols, which will need to handle restricted assets carefully when bundling tokens together.
What this means
The trade-off for users is real and should not be glossed over. Tokens issued under CIP-0113 can be frozen or seized by their issuers, which means holders are trusting the issuer as much as the code.
Importantly, these controls apply to tokens whose issuers opt into the standard. ADA itself is not being turned into a freezable asset, though the shared-output issue shows why wallets and protocols will need to tread carefully when mixing restricted and unrestricted assets.