Cardano News: CIP-0113 Brings Compliance Rules to ADA Tokens

Overview of CIP-0113## CIP-0113 is a standard that enables issuers to build compliance rules into programmable tokens for regulated stablecoins, funds, and bonds. This standard allows for identity checks, sanctions screening, and transfer restrictions, giving holders of these tokens some control over their assets. ## How CIP-0113 Works## CIP-0113 changes the way tokens can be moved between wallets. With this update, rules travel with the asset and are checked before transfers. For example, a fund could reject transfers to unverified investors, or a stablecoin issuer could block transfers to sanctioned addresses. Tokens are managed through a shared smart contract, with Cardano's transaction validators checking the relevant rules without requiring a hard fork. ## Impact of CIP-0113## The CIP-0113 standard applies only to tokens whose issuers opt in, meaning not all Cardano assets are subject to the same controls. Native tokens could be minted freely, but once issued they moved with zero issuer control. The standard is expected to increase the adoption of regulated stablecoins, tokenized securities, and RWAs that need freeze, seize, or other forms of asset control. ## Integration and Adoption## The Cardano Foundation announced that CIP-0113 is live on the network following independent security audits. Issuers can select existing rule sets or write their own, then update them as regulations change. The Foundation named Eternl and GeroWallet as supporting wallets, CardanoScan as a supporting blockchain explorer, and BloxBean as a developer-tool provider. These integrations indicate that tools support the launch, but they do not show how widely issuers will adopt the standard. The Foundation also announced recognition under the certification framework of the Swiss Capital Markets and Technology Association, an industry body who.