Cardano CIP-0113 Moves Into Production as Foundation Details Next Upgrade

Cardano Foundation has provided a technical update on CIP-0113, confirming that its programmable token framework is operational on mainnet, with one audited module currently recommended for production use. During a Developers Office Hours presentation, Senior Blockchain Architect Giovanni Gargiulo detailed the available infrastructure, wallet integrations, and planned improvements, including partial asset freezes and lower transaction costs.

CIP-0113 went live on October 2, 2026, allowing Cardano native assets to incorporate smart contract-enforced rules governing issuance, transfers, and regulatory compliance. The framework supports use cases involving tokenized securities, regulated stablecoins, and other financial assets that require restrictions on ownership or movement.

Cardano Programmable Tokens Enter Production With Swiss Securities Module

Gargiulo demonstrated the framework using tokenized shares issued by Veridian, a company spun out of Cardano Foundation. The assets are visible on CardanoScan, where users can identify their programmable status and review issuance transactions.

Unlike conventional native assets, programmable tokens operate under smart contract rules that determine whether transfers are permitted. These rules can include identity verification, address restrictions, freezing, and authorized transfers initiated by designated parties.

CIP-0113 separates its core infrastructure from individual compliance modules. This allows issuers to implement different requirements without creating an entirely new token standard for each financial product. A stablecoin issuer may require sanctions-related restrictions, while tokenized securities may need shareholder verification and controlled ownership transfers.

The framework uses Cardano's extended UTXO model, with programmable assets held under shared script control and ownership represented through associated staking credentials. A dedicated registry identifies the token policies governed by the system.

The CPT-RWA-CH implementation, aligned with the Capital Markets and Technology Association's CMTAT framework, is currently the only audited module Gargiulo identified as suitable for production use. Its implementation has received CMTA recognition for the relevant tokenized securities requirements in Switzerland.

Other modules, including simplified Freeze and Seize implementations and experimental KYC mechanisms, remain under development and are not presented as production-ready.

Wallet Support Advances as DeFi Integration Faces Technical Limitations

The presentation also covered the growing infrastructure supporting programmable tokens across Cardano.

CardanoScan already identifies CIP-0113 assets, while Eternl supports displaying and filtering them. Gargiulo described Eternl's transfer functionality as experimental, with availability depending on the user's access. Integration work also involves GeroWallet, BloxBean's Yaci infrastructure, and additional blockchain explorers.

Developers can access open-source reference implementations and a programmable token platform deployed across mainnet, Preview, and Preprod. The platform provides functionality for issuing, transferring, burning, and administering supported assets, alongside development tools for Java and TypeScript environments.

DeFi integration remains at an earlier stage. Gargiulo referenced work involving FluidTokens and Minswap on automated market maker infrastructure for programmable tokens. SundaeSwap was also mentioned as having relevant technical infrastructure, although no confirmed production launch schedule was provided.

One limitation involves frozen UTXOs. If programmable tokens share an output with ADA or other native assets, restrictions affecting that output can prevent the entire UTXO from being spent. Gargiulo cautioned developers against combining unrelated assets in the same outputs unless required.

Programmable transactions also introduce additional execution costs. Based on implementations discussed during the presentation, Gargiulo estimated an increase of approximately 10% to 15%, depending on the complexity of the smart contract operations.

He recommended conventional native assets for applications that do not require additional compliance rules, avoiding unnecessary execution overhead.

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Version 2 Targets Partial Freezes and Lower Execution Costs

Cardano Foundation is developing a second version of its Swiss securities module, with improvements to flexibility and transaction efficiency.

One planned capability is partial asset freezing. Rather than restricting an entire holding, an issuer would be able to freeze a specified portion. Gargiulo illustrated this with an account holding 1,000 tokens, where 300 could be frozen while the remaining 700 stayed transferable.

The next version is also expected to incorporate newer Plutus built-in functions introduced through Cardano's van Rossem hard fork. These changes are intended to reduce smart contract execution costs and support larger transaction batches.

Gargiulo outlined an estimated three-to-four-month development window for the updated securities module, alongside possible improvements to the underlying CIP-0113 framework over three to six months. Neither timeline was presented as a confirmed release date.

Additional development includes support for Catalyst-funded projects and modules covering time-locked transfers, allowlists, royalty distributions, and potential zero-knowledge identity verification.

The current production implementation already supports regulated tokenized securities using the audited CPT-RWA-CH module. Partial freezes, further execution optimizations, and broader DeFi compatibility remain planned or experimental capabilities that are not yet part of the fully supported production offering.