Charles Hoskinson Sets His Sights on CIP-113, a Proposal to Tokenize Real-World Assets on Cardano

Cardano founder Charles Hoskinson has highlighted a proposal to standardize programmable blockchain assets on Cardano, revealing plans to collaborate on the initiative.

In a tweet on December 29, Hoskinson shared an update on CIP-113, a proposal to introduce a new standard for interoperable securities, stablecoins, and tokenized real-world assets within the Cardano ecosystem.

The proposal, which has been in development for over a year, seeks to introduce smart accounts that are derived from users’ stake credentials. This approach ensures that tokens cannot leave the account without an explicit transaction, enhancing security.

Hoskinson, who is also the CEO of Input Output Global (IOG), the company behind Cardano, highlighted the proposal’s potential integration with Midnight, Cardano’s privacy-focused sidechain.

“CIP-113 is a proposal to standardize programmable blockchain assets on Cardano. I’ll be reviewing and providing feedback on this proposal, and working with the development team (via J.J. Siler) on how CIP-113 fits into Cardano’s broader strategy for tokenizing real-world assets. Also, thinking about how this might integrate with Midnight,” Hoskinson tweeted.

The discussion around CIP-113 follows an update by senior blockchain engineer Matteo on X on Cardano Stablecoins, Securities, and Real World Assets.

According to Matteo, the team will release updated documentation by mid-January 2025, with full operational readiness of CIP-113 expected by Q1 2025.

Early adopters like FluidTokens and MinswapDEX are preparing for implementation. Notably, Finest Tokenize will be using CIP-113 to tokenize stocks and securities.

In a broader context, Hoskinson has highlighted the potential of CIP-113 within Midnight, a privacy-centric sidechain emphasizing secure and compliant transactions.

As Cardano expands its cross-chain partnerships involving RWAs, integrating CIP-113 could position Cardano as a leader in tokenizing real-world assets. With its approach to programmable assets, CIP-113 is set to unlock new opportunities in DeFi and asset tokenization.

A month ago, Hoskinson elaborated on the broader implications of CIP-113 on his YouTube channel. He discussed how Cardano’s hybrid issuance system, combining native assets with enhanced ledger features, could unlock new opportunities in asset management and decentralized finance (DeFi).

“The goal is to make Cardano the premier platform for tokenizing and managing real-world assets securely, efficiently, and compliantly,” Hoskinson stated.

Hoskinson also addressed concerns around features like freeze-and-seize, clarifying that these tools could serve non-adversarial purposes, such as asset recalls, identity updates, or dividend payments.