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Cardano's CIP-0113 gives issuers freeze-and-seize power

Cardano's CIP-0113 gives issuers freeze-and-seize power

Cardano's CIP-0113 lets issuers freeze and seize tokens. It is a bid for regulated stablecoins and funds.

Cardano's new CIP-0113 token standard gives issuers the ability to freeze, seize and restrict assets, putting compliance inside the token itself. The Cardano Foundation built it for regulated stablecoins and tokenized funds, and it needs no hard fork. That makes Cardano a candidate rail for regulated assets, at the cost of issuer control.

The Ledger Desk · 3 min read

Cardano now has a token standard built around issuer control. CoinDesk reports that CIP-0113, announced on 7 October 2026, lets issuers restrict who can receive an asset and freeze or seize holdings under specified rules. The Cardano Foundation is the reported builder. The pitch is regulated money on a public chain. The question for the segment is whether issuers adopt it, since a standard has no settlement volume until assets clear on it.

What the standard actually does

CIP-0113 moves compliance from the application layer into the token. Per CoinDesk, shared smart contracts check rules before every transfer, including identity checks and sanctions screening, and issuers can freeze assets when a regulator or court orders it. Rule sets can be customized or pre-existing and updated as regulations change. Cardano Foundation CEO Frederik Gregaard told CoinDesk the rules have to travel with the asset and be enforced every time it moves.

Why issuers are the target customer

The use cases CoinDesk lists are regulated stablecoins, investment funds sold only to verified investors, and tokenized bonds. Each has a legal duty to stop a transfer to a non-compliant party or to comply with a court order. A token that cannot be frozen or restricted is hard for such an issuer to ship. CIP-0113 is aimed at that gap rather than at permissionless retail assets.

Not a first for Cardano

Input Output has already described a proof-of-concept regulated stablecoin on Cardano with freeze-and-seize capabilities, built with Anastasia Labs, that also implements CIP-0143. That standard defines a registry of token policies and an address format so wallets and applications can recognize programmable tokens automatically. CIP-0113 therefore reads as a second route to the same capability, from the Foundation's side, and the two approaches may need to coexist.

What to watch next

The test is issuance, not specification. CoinDesk names Eternl, GeroWallet, CardanoScan and BloxBean as initial supporting tools, which covers wallets and explorers but not issuers. Watch for a named stablecoin or fund issuer, a stated supply on chain, and a regulator's view of the standard. Until money clears on it, CIP-0113 is infrastructure waiting for a customer, and holders should read the issuer's powers as part of the asset's risk.

What does CIP-0113 let a token issuer do?
According to CoinDesk, it lets issuers restrict who can receive a token, freeze holdings when a regulator or court orders it, and seize or transfer holdings under specified rules.
Does CIP-0113 require a Cardano hard fork?
No. CoinDesk reports it uses shared smart contracts that enforce rules before transfers, with no hard fork needed.
Is freeze-and-seize new to Cardano?
No. Input Output has described a proof-of-concept regulated stablecoin with freeze-and-seize capabilities, built with Anastasia Labs, that also implements a separate standard, CIP-0143.
  1. Cardano gives token issuers power to freeze, seize and restrict assets — CoinDesk
  2. New programmable token design proves Cardano's freeze-and-seize capabilities — Input Output
  3. CIP-0143: Interoperable Programmable Tokens — Cardano Improvement Proposals