New Cardano Token Standard Enables Freezing and Seizing of Assets

The Cardano Foundation launched CIP-0113 on mainnet on October 7. This native token standard allows issuers to freeze, seize, and restrict assets directly on the blockchain.

The standard is designed for regulated assets, and the freeze and seizure capabilities naturally raise questions about control.

How CIP-0113 Affects Cardano Tokens

CIP-0113, a Cardano Improvement Proposal, establishes a native token standard featuring built-in compliance controls.

Issuers have the ability to freeze holdings, seize assets, restrict who can receive tokens, and implement KYC, AML, and sanctions screening. Transfer restrictions are also available.

Cardano’s programmable token standard, CIP-0113, is live on mainnet.

Issuers of stablecoins and other regulated assets can now build compliance rules directly into native Cardano tokens.

Enforced by the network itself. No hard fork required.

— Cardano Foundation (@Cardano_CF) October 7, 2026

On-chain enforcement occurs through the Cardano ledger during minting, burning, and transfer operations. The system uses Cardano's eUTXO model, requires no hard fork, and maintains predictable execution costs.

A modular structure with pluggable substandards enables issuers to develop custom modules or modify existing ones.

Regulated products often need such tools. A stablecoin issuer, for instance, may need to block an address or recover funds following a legal order. CIP-0113 incorporates those functions directly into the token.

The standard is aimed at stablecoins, tokenized funds, and other regulated assets. Community development started in 2023, well before the launch. The proposal reached the CIP repository on September 29, 2026.

Is ADA at Risk of Being Frozen by CIP-0113?

No. ADA is not being turned into a freezable asset. The controls only affect tokens whose issuers choose to adopt the standard.

ADA's price still declined after the announcement. The token was trading at $0.253, an 8.71% drop over the previous 24 hours. A broader crypto market downturn exacerbated the decline. ADA fell from near $0.28 to a low around $0.25.

Think of the standard as an optional toolkit rather than a network-wide mandate. Only issuers who opt into CIP-0113 gain the power to freeze or seize their own tokens.

One technical issue involves shared outputs. A restriction on one token can impact others bundled with it. The standard addresses this through a mechanism called unfracking.

The Eternl and GeroWallet wallets, along with the CardanoScan block explorer, support the standard. The Swiss Capital Markets and Technology Association also recognized tokens compliant with CIP-0113.

It rated them as comparable to its CMTAT framework for on-chain equity securities certification.