Cardano Foundation Joins CMTA After CIP-0113 Recognition

The Cardano Foundation announced on October 29 that it had joined the Capital Markets and Technology Association (CMTA), a Swiss association focused on blockchain standards for capital markets. CMTA welcomed the Foundation as a new member. The announcement follows CMTA’s October 7 decision to recognize Cardano’s CIP-0113 implementation as equivalent to CMTAT under its Tokenized Shares certification scheme.

CMTA Welcomes Cardano Foundation as a Member

CMTA and the Foundation said they would work together to advance standards for regulated securities tokenization. The membership brings the Foundation into an association that develops frameworks for using blockchain in capital markets.

The announcements did not identify a specific securities issuance, issuer, or new deployment resulting from the membership.

CIP-0113 Adds Compliance Rules to Cardano Tokens

CIP-0113, also known as Programmable Asset Tokens, lets issuers attach compliance rules to native Cardano assets. These can restrict transfers to verified holders, freeze assets, or apply other controls required for tokenized securities. The Cardano ledger checks the rules during transfers, minting, and burning.

CMTAT is CMTA’s blockchain-agnostic framework for tokenized financial instruments. CMTA’s Expert Committee found that the Cardano CMTA smart contract includes the functions required by the framework for equity securities. Under the certification scheme, issuers may use it instead of the CMTAT reference implementation for tokenized shares.

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Recognition Covers Shares, With Deployment Conditions

The recognition applies to the contract implementation. It does not automatically certify every token or issuer, and it is not regulatory approval. CMTA’s decision covers tokenized shares, but not its tokenized debt certification scheme or Cardano’s underlying base-layer infrastructure.

Each deployment must still meet the conditions in the decision. These include recording the tokenization terms on-chain, identifying the token by name and ticker, representing shares as whole units, and recording the Cardano infrastructure version against which the implementation was checked.