Cardano Introduces Programmable Tokens With New CIP-0113 Standard

• The Cardano Foundation has released CIP-0113, which allows token issuers to embed enforceable compliance logic directly to native assets on the network.
• The goal is to enhance regulated tokenization as institutions have been demanding tokens that can enforce features like KYC and AML checks.

The Cardano Foundation has announced CIP-0113, a new improvement proposal that introduces programmable tokens on the network. The Foundation says that CIP-0113 will allow token issuers to enforce compliance logic directly to native assets issued on the network as it targets mainstream tokenization adoption.

Cardano just got programmable tokens at scale.

With CIP-0113, token issuers now have a standard to enforce compliance logic directly to native Cardano assets.

The framework is modular, open source, and live on the Preview testnet.

Learn more:https://t.co/KYSq3yOXGx

— Cardano Foundation (@Cardano_CF) March 9, 2026

In a longer post, Giovanni Gargiulo, a senior blockchain architect at the Foundation, broke down the new standard and why it will be the key to unlocking the growth of stablecoins and tokenization on the network. He notes that tokenized asset issuers need to adhere to existing regulations, and the blockchains they use will need native compliance capabilities. Currently, most institutions rely on customized add-ons that are limited in scope and not scalable for wider use. “This is where CIP-0113 comes in. It defines a standard for programmable tokens, enhancing native Cardano assets with customizable rules that, in turn, are automatically enforced every time a token is transferred, minted, or burned,” Gargiulo explains. Cardano Targets Regulated Tokenization CIP-0113 enables issuers to attach modular compliance logic, allowing them to decide what programmability they want to add to their tokens. It comes with substandards that provide a collection of smart contracts in which the token logic is embedded. As Gargiulo explains, “the standard establishes a way to attach compliance logic directly to a token, and the network itself transparently enforces the programmable rules.” The token issuer can embed any logic they want, depending on their areas of expertise, token needs and regulatory requirements. These can include checking that the holder of the token is not on a sanctioned list, allowing transfers only between verified accounts, restricting in which jurisdictions the tokens can be transacted and freezing the tokens if required by authorities. CIP-0113 introduces script-controlled addresses, known more commonly as smart accounts. The tokens issued under this standard sit inside these smart accounts, and the script verifies whether the transfer is allowed by the token logic before any transactions are authorized. Every movement of the token must satisfy the set rule and cannot move freely like normal ADA. For Cardano wallets and dApps, CIP-0113 comes with an on-chain registry that they can use to verify  a token’s programmed scripts. This enables them to determine which rules apply to that token and which scripts must be executed for each transaction. The new standard comes at a time when most networks are rolling out new features aimed at institutional users. As CNF reported, Stellar Foundation CEO Denelle Dixon published a new deep dive into how her network is balancing privacy and transparency for institutions. Last week, Cardano partnered with London-based Archax to bring its tokens to the company’s regulated institutional infrastructure, as CNF reported.