Cardano Launches Programmable Tokens With Built-In Compliance

• CIP-0113 lets issuers embed KYC, AML, and sanctions rules into regulated tokens.
• Cardano’s programmable tokens remain native assets and require no network hard fork.
• CMTA recognition strengthens Cardano’s potential role in regulated tokenization markets.

Cardano has launched CIP-0113 on mainnet, allowing issuers to embed compliance rules directly into regulated digital assets. The standard targets stablecoins, tokenized funds, bonds, and other financial instruments requiring on-chain controls. It also allows issuers to apply KYC, sanctions screening, transfer restrictions, and other requirements at the token level. 

CIP-0113 Brings Compliance to Cardano Tokens

The Cardano Foundation announced on Oct. 7 that CIP-0113 is now live on Cardano mainnet. The programmable token standard targets stablecoins, tokenized funds, bonds, and other regulated assets.

Under the framework, issuers can incorporate KYC and AML requirements directly into their tokens. They can also add sanctions screening, transfer restrictions, freezing, and seizure functions when required.

Importantly, these controls apply only to assets issued under CIP-0113. They do not give issuers control over ADA or existing Cardano native tokens.

The rules are checked whenever a programmable token is transferred, minted, or burned. As a result, compliance requirements stay attached to the asset rather than relying solely on an external exchange or custodian.

Cardano Foundation CEO Frederik Gregaard said regulated assets require rules that remain with them throughout their lifecycle. The Foundation has positioned CIP-0113 as infrastructure for institutions considering blockchain-based tokenization.

Cardano’s programmable token standard, CIP-0113, is live on mainnet.

Issuers of stablecoins and other regulated assets can now build compliance rules directly into native Cardano tokens.

Enforced by the network itself. No hard fork required. pic.twitter.com/J6WKo1G6bI

— Cardano Foundation (@Cardano_CF) October 7, 2026

Programmable Assets Remain Native Cardano Tokens

CIP-0113 uses Cardano’s extended UTXO model while keeping programmable assets native to the network. As a result, supported wallets, explorers, and applications can interact with these tokens through existing Cardano infrastructure.

Issuers can select predefined compliance modules or develop customized rules for individual assets. Those modules can also be updated as regulatory requirements change without modifying the underlying standard.

In addition, the rollout did not require a Cardano hard fork. This allows the programmable token framework to operate without changing the network’s core protocol.

The Foundation said the standard underwent multiple independent security audits before reaching mainnet. Its development also involved Cardano community experts and technical contributors.

Launch support includes Eternl, GeroWallet, CardanoScan, and BloxBean. These integrations provide wallet, explorer, and development support for projects building programmable assets.

The framework also addresses a growing requirement in tokenized financial markets. The Foundation noted that international institutions, including the Bank for International Settlements and the International Monetary Fund, have highlighted programmable compliance as important for future markets.

CMTA Recognition Strengthens Institutional Focus

The Swiss Capital Markets and Technology Association has separately recognized CIP-113 Programmable Asset Tokens under its certification framework. The recognition treats them as a smart-contract equivalent to CMTAT for certification purposes.

That development could support the use of Cardano for Swiss ledger-based securities. It also potentially reduces additional due diligence requirements while maintaining a chain-agnostic certification approach.

However, the mainnet launch does not yet establish widespread institutional adoption. The standard still needs issuers to deploy actual regulated assets and demonstrate demand.

The Cardano Foundation said it will continue working with projects and institutions using CIP-0113. It is also developing a securities module designed for regulated financial instruments.

The launch therefore marks a significant expansion of Cardano’s tokenization infrastructure. Its next test will be whether stablecoin issuers, asset managers, and financial institutions adopt programmable tokens at scale.