Cardano Advances Programmable Tokens With CIP-113

CIP-113 was merged into the official Cardano Improvement Proposals repository on September 29, 2026, completing the review stage of a proposal opened in 2023. The specification describes how issuers can attach enforceable rules to tokens while giving wallets and applications a consistent architecture to integrate.

The merge follows work on contracts and supporting tools already underway across the ecosystem. CIP-113 remains Proposed, with mainnet issuance, testing, and usable wallet support among the requirements for reaching Active status.

How CIP-113 Makes Token Transfers Programmable

Cardano’s native asset model lets the ledger track tokens alongside ADA. Minting policies determine when units can be created or destroyed, but do not independently govern every subsequent transfer between holders.

CIP-113 adds a structure in which ownership changes require additional smart contract checks. Tokens remain at script-controlled addresses, and transactions validate both ownership and the conditions attached to each asset. The design uses existing Cardano capabilities and requires no hard fork.

Issuers can select modules for approved-holder lists, identity checks, transaction limits, or freezing and forced transfers. These controls belong to the relevant token implementation, while ADA retains its existing transfer rules.

The modular design accommodates different products. A tokenized security might restrict transfers to eligible investors, while a stablecoin could use a list of blocked addresses. Both can follow the same core architecture while applying different conditions.

Why a Common Standard Matters for Cardano

The Cardano Foundation identified fragmented integration work as a barrier to broader tokenization. Custom solutions required wallets, explorers, and applications to accommodate different architectures. CIP-113 provides a shared foundation, allowing developers to reuse integration work while handling each asset’s specific rules.

That matters for products whose conditions extend beyond recording ownership. A tokenized instrument may require identity verification, a holding period, or restrictions on eligible recipients. The framework gives developers a way to enforce those conditions during transactions using Cardano’s native asset infrastructure.

Its relevance also extends to decentralized trading. Minswap Labs and FluidTokens have published documentation for a DEX architecture designed around CIP-113 tokens. The design connects token validation with swap orders, liquidity pools, and transaction processing.

For example, an exchange handling a token restricted to approved holders must check the recipient’s eligibility when executing a swap. The published architecture addresses how those checks can operate within Cardano’s transaction model.

This work targets an integration problem across issuance and trading: preserving an asset’s programmed conditions as it moves between users and applications. Issuers define the conditions, while compatible wallets and protocols construct transactions that satisfy them.

Implementations and the Path to Active

The Cardano Foundation maintains an Aiken implementation of the core contracts and a separate platform for testing user-facing functions. The platform includes token issuance, transfers, wallet connections, and reference modules for identity checks and transfer restrictions. Its documentation describes limited Preview testing and an ongoing research and development stage.

GeroWallet’s September 16 release, version 2.7.1, includes programmable-token balance displays and locked-asset indicators. Availability depends on feature flags and network support, and programmable-token transfers remain disabled. A development change merged the previous day explicitly restricted the integration to Cardano Preview.

Security documentation distinguishes the components. The core implementation’s README reports professional audits, with findings resolved or acknowledged as remaining design limitations. The separate platform identifies itself as not production-ready and lists its professional audit as pending.

CIP-113’s acceptance criteria require issuance of at least one compliant token on both Preview and mainnet, end-to-end testing, and a widely adopted wallet capable of displaying balances and transferring the assets. The required user flow therefore connects mainnet issuance with the ability to hold and move a token while its programmed conditions are enforced.