Cardano adds a token standard that lets issuers freeze and seize assets

Cardano now has a way for companies to issue tokens that follow the rules regulators expect. The Cardano Foundation announced on Wednesday that a standard called CIP-0113 is live on the network after independent security audits, CoinDesk reported.

The standard lets an issuer attach rules to a token that are enforced on every transfer. An issuer can require identity checks, screen addresses against sanctions lists, restrict who may receive the token, and freeze or seize holdings under rules it sets out. Issuers can pick from existing rule sets or write their own, and can update them as regulations change, according to CoinDesk. The design is aimed at regulated products such as stablecoins, funds and bonds.

The powers have limits. CIP-0113 does not apply to ADA, Cardano's own coin, or to tokens that already exist on the network, crypto.news reported. It governs only new tokens created under the standard, so nobody gains the ability to freeze ADA.

The wallets Eternl and GeroWallet, the block explorer CardanoScan and the developer tool BloxBean supported the standard at launch, both outlets reported. The audits found no critical or high-severity problems in the first module, according to crypto.news.

No stablecoin or fund using the standard was announced on Wednesday, crypto.news reported. Frederik Gregaard is the Cardano Foundation's chief executive.