Cardano puts programmable token standard CIP-0113 on mainnet

The Cardano Foundation announced on 7 October that CIP-0113 programmable tokens are live on Cardano mainnet, allowing issuers to make transfer and issuance rules part of a token’s on-chain validation. The Foundation’s announcement says the standard targets stablecoins, tokenised funds, bonds and other regulated assets. It was announced at TOKEN2049 after joint work with Cardano community experts and multiple independent security audits.

The rules can cover KYC and AML checks, sanctions screening, transfer restrictions, and freeze or seize controls. CIP-0113 uses Cardano’s extended UTXO model and existing native asset infrastructure. The Foundation says no hard fork was required. Issuers can select modular rule sets or write their own, and update them without changing the core standard.

How does CIP-0113 validate a transfer?

Each programmable token is held at a shared script address, while ownership is represented by stake credentials. The Foundation’s Aiken implementation describes a validator path that dispatches an ordinary transfer to a transfer delegate. That delegate checks the token’s policy against an on-chain registry and invokes the registered transfer-logic module.

The registry is a sorted linked list of UTxOs with NFT markers. A covering-node proof supplies a reference input for the token’s registered policy. The transfer validator checks ownership of spent inputs and whether the outputs preserve the tokens in a valid shape under the shared address. If the module’s rules fail, the transaction is rejected. When it passes, the tokens return to the shared address under the recipient’s stake credential.

This design makes rule enforcement part of the transaction’s ledger validation, rather than a screening step performed only by an issuer’s website or transfer service. It also defines the boundary of the controls: the implementation treats a token absent from the registry as an ordinary native token. CIP-0113 rules therefore apply to assets registered under the standard, not automatically to every Cardano token.

What does issuer control cover?

Modules supply token-specific rules, so a token can use allowlists, denylists or other restrictions without changing the shared framework. The implementation separates ordinary transfers from third-party actions such as freeze enforcement and seizure. Those controls depend on the module selected and registered for the asset; the standard does not make every token subject to the same issuer powers.

The Foundation says tokenized assets remain native Cardano assets, but integration still matters. Its announcement names Eternl, GeroWallet, CardanoScan and BloxBean as launch supporters. The implementation repository says wallets, explorers and decentralised exchanges need integration work to fully support the shared-address custody model. In particular, wallets must use stake credentials to determine token ownership, and exchange contracts must account for the programmable validators.

What does CMTA recognition mean?

The Foundation also said the Swiss Capital Markets and Technology Association recognized CIP-0113 as a smart contract equivalent to its CMTAT framework for the association’s certification scheme. It says CIP-0113 includes CMTAT’s mandatory functions and may be used to certify compliance of ledger-based equity securities under CMTA standards. The recognition is specific to that scheme; it does not itself certify every token issued under CIP-0113.

The Foundation said it plans further work with projects and institutions, including development of a securities module for regulated financial instruments. The mainnet launch makes the framework available, while issuers still need to choose and configure modules, register token rules, and ensure the wallets and applications they rely on can handle the assets.

Sources and documents

• Foundation’s announcement — cardanofoundation.org
• Foundation’s Aiken implementation — github.com