Cardano Foundation launched its programmable-token framework CIP-0113 on the Cardano mainnet on October 7, 2026, giving issuers of regulated assets such as stablecoins, tokenized funds, and bonds built-in powers to freeze, seize, and restrict transfers.
The standard allows compliance rules to be enforced directly on the Cardano ledger every time a token is minted, burned, or transferred, rather than relying on external servers or company dashboards. Cardano Foundation chief executive Frederik Gregaard said the rules have to travel with the asset and be enforced every time it moves. The upgrade did not require a hard fork because it uses existing native-asset and scripting machinery.
Before a transfer occurs, the token can check whether wallet addresses meet issuer requirements, blocking unverified or sanctioned addresses. Issuers may also include powers to freeze balances, recover assets through court-ordered processes, and change control authorities depending on the token's published design. The framework is modular, with a core standard and swappable compliance modules.
Several ecosystem services already support CIP-0113, including wallets Eternl and GeroWallet, explorer CardanoScan, and developer tool provider BloxBean. Swiss industry group Capital Markets and Technology Association recognized CIP-0113 tokens as comparable to its framework for tokenized securities. The standard began development in 2023, was merged into the Cardano Improvement Proposals repository on September 29, 2026, and went live around the TOKEN2049 conference.
The Foundation also addressed a technical wrinkle: Cardano's shared transaction output can bundle restricted and unrestricted tokens, so it introduced an unfracking mechanism. It cautioned lending platforms to review token rules before accepting them as collateral. ADA itself is not affected and remains freely transferable; only tokens whose issuers adopt CIP-0113 carry restrictions. ADA's price fell 4.5% over the past 24 hours, matching a broader crypto market decline.
