Cardano just added the kind of token controls Wall Street wants and DeFi may hate
Cardano’s CIP-113 proposal would add issuer-controlled transfer rules, including freezes, for native tokens to support regulated assets such as stablecoins and securities. Because Cardano’s eUTXO model bundles assets in transaction outputs, restricting one token could temporarily prevent unrelated tokens and ADA in the same output from being spent. A mechanism called “unfracking” can separate assets, but only with holder authorization and under the token’s registered rules; separation may be disallowed. Wallets and DeFi protocols may need to track output composition and permissions, segregate assets, or account for collateral and liquidation risks. The proposal was merged into the repository but remains at the Proposed stage, pending testing, deployment, and wallet support.
