The framework supports stablecoins, tokenized funds, bonds, and other regulated financial instruments. Issuers can embed identity checks, sanctions screening, transfer restrictions, and asset recovery rules directly into their tokens. 

The launch comes while Cardano’s stablecoin market remains relatively small compared with larger blockchain networks.

Cardano CIP-0113 adds freeze and seize controls

The Cardano Foundation launched CIP-0113 on mainnet after announcing the standard at the TOKEN2049 conference. The Swiss-based nonprofit introduced the framework without requiring a Cardano hard fork.

CIP-0113 allows issuers to create compliance rules that follow tokens across applications, wallets, and services. The Cardano ledger checks those rules whenever users transfer, mint, or burn affected tokens.

Transactions proceed only when they meet conditions defined by the issuer. Otherwise, the ledger rejects them before completing the transaction.

Issuers can introduce identity verification, anti-money laundering checks, sanctions screening, and transfer restrictions. They can also activate optional freeze-and-seize functions where regulations or product structures require them.

The framework includes pre-built rule sets called modules. However, issuers can develop custom rules and replace existing requirements when regulations change.

Cardano Foundation chief executive Frederik Gregaard said the rules should travel with assets whenever they move. The approach aims to keep compliance controls attached to tokens instead of individual applications.

Freeze-and-seize controls can also give issuers authority to recover tokens without the holder’s approval. However, issuers must specifically enable those capabilities within their asset rules.

The Aiken implementation describes Freeze & Seize as an optional regulatory compliance feature. Therefore, CIP-0113 does not automatically make every Cardano token subject to confiscation.

The technical specification also warns lending platforms about accepting assets carrying issuer-controlled recovery powers. Services may need to review those controls before accepting such tokens as collateral.

Cardano targets tokenized finance despite small stablecoin market

Cardano introduced the framework while its stablecoin market remains considerably smaller than competing networks. DeFiLlama data cited in the announcement places Cardano stablecoins at roughly $67.5 million.

Top stablecoins on Cardano. Source: DeFiLlama.

Ethereum, Solana, and XRP Ledger already support versions of transfer controls for regulated assets. Cardano has therefore entered an area where competing networks already offer compliance-focused infrastructure.

The network also added ADA support for Coinbase’s x402 payment standard in September. That integration expanded Cardano’s payment infrastructure shortly before the CIP-0113 mainnet launch.

CIP-0113 also responds to growing institutional demand for programmable financial assets. The BIS and IMF have highlighted programmability as an important feature for expanding tokenized finance.

Programmability allows issuers to embed regulatory conditions directly into financial assets. These conditions can then remain enforceable as assets move between supported platforms.

The Swiss Capital Markets and Technology Association has also recognized CIP-0113 Programmable Asset Tokens. It views the standard as a smart-contract equivalent to its CMTAT framework.

That recognition supports potential use involving ledger-based equity securities under Swiss standards. Meanwhile, the Cardano Foundation continues developing a dedicated securities module for regulated financial instruments.

The technology predates this week’s mainnet announcement. CIP-0113 builds on CIP-143, an earlier reference design developed by Phil DiSarro and the IOG team.

Developers later migrated the implementation to the Aiken programming language. Cardano founder Charles Hoskinson also discussed freeze-and-seize capabilities in January 2025.

Hoskinson said similar controls could support asset recalls, identity updates, and dividend payments. Those functions extend the framework beyond sanctions enforcement and stablecoin restrictions.

The post Cardano launches freeze controls for its growing stablecoin market first appeared on Coinfea.

Zinetti joined the Cardano Foundation in 2024, where he served as the technical leader for expanding the Foundation’s projects and products, with a focus on scaling enterprise adoption. The Foundation confirmed Zinetti’s departure in a separate post on X. No replacement has been named, and the company has yet to clarify how the CTO’s duties will be covered once Zinetti leaves at the end of the month. It, however, mentioned that the board and executive team will continue working closely with senior technical and business development staff to hold the line on enterprise adoption.

Cardano Foundation reiterates focus on its goals

Cardano Foundation also mentioned on X that “In line with our current roadmap, the Foundation Board and Executive team continues to work closely with our technical and senior business development leaders to maintain a direct focus on enterprise adoption.” The Swiss-based Cardano Foundation is a not-for-profit organization tasked with advancing Cardano.

It is worth noting that Cardano is also supported by two other separate entities, Input Output Global (IOG) and Emurg. All three companies work together to manage and advance the Cardano blockchain. IOG is Cardano’s engineering and development front, led by Charles Hoskinson, while Emurgo serves as the commercial arm. In July, however, Emurgo announced it would step down from its duties as a member of Cardano’s governance group.

The decision was made after its wallet, SecondFi, was exploited, resulting in the loss of $2.4 million in ADA, as Cryptopolitan reported. Cardano is currently the 29th-largest chain by total locked-asset value (TVL). It accounts for $69.62 million in DeFi TVL, across 69 protocols, according to on-chain data from DeFiLlama. At the time of writing, the native token ADA was trading at $0.1961, with a $7.16 billion market cap.

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His comments focused on XRPL’s speed, payment-focused structure, and use of trusted validator lists to reach agreement without mining or staking. 

The remarks came during a busy period for the XRP ecosystem, as Schwartz took a new honorary board role at the XRP Ledger Foundation.

Hoskinson Revisits XRPL After Years Away

Hoskinson said he had not closely reviewed the XRP Ledger design since around 2013 or 2014, but a new Cardano-related project brought him back to the network. 

His team is working on Midnight, a privacy-focused blockchain project tied to Cardano, and its glacier drop token distribution requires support for several networks, including XRPL.

Schwartz is advising the Cardano team on XRPL integration details. That work led Hoskinson to study the ledger’s consensus paper and reassess how the system handles Byzantine agreement. He described the design as a well-reasoned system and pointed to its practical focus on fast settlement.

The XRP Ledger launched in 2012 and uses a Federated Byzantine Agreement model. Unlike proof-of-work networks, it does not ask miners to solve complex puzzles. Unlike proof-of-stake networks, it does not rely on token locking to select validators.

UNL Design Draws Fresh Attention

Hoskinson placed specific attention on the Unique Node List, known as the UNL. Each XRPL participant can choose trusted validators, while recommended lists often include vetted validators from different regions and organizations.

He also noted the negative UNL, which helps the network continue operating when trusted validators go offline or stop responding. 

That feature can remove unreliable validators from the agreement process, so the ledger can maintain liveness instead of waiting indefinitely for missing participants.

The UNL structure has remained one of XRPL’s most debated design choices. Supporters argue that it gives the network fast confirmation and protection against validator spam. 

Critics argue that systems based on trusted lists carry decentralization trade-offs compared with permissionless mining or open validator entry.

Schwartz Role Adds Context

The timing of Hoskinson’s remarks gave the discussion added importance. The XRP Ledger Foundation announced new leadership on May 8, with Brett Mollin named executive director, Denis Angell named chief technology officer, Rene Huijsen named director of operations, and Hussein Zangana named director of community.

The board then added Schwartz as an honorary member because of his long history with XRPL’s original design. 

His role connects with Cardano’s Midnight work, where technical coordination with XRPL is needed.

Hoskinson’s comments do not end the debate over XRPL decentralization. However, they show renewed respect for an early blockchain design built around speed, efficiency, and global payments.

The post Cardano Founder Praises XRP Ledger Consensus Design first appeared on Coinfea.

The incident briefly partitioned the blockchain, but block production proceeded unabated.

Validation mismatch triggers a chain split

Intersect, the governance organization of Cardano, stated that this was a result of a version validation mismatch between nodes. The newer node software accepted the invalid transaction, whereas the older ones rejected it, forming two competing chains. According to Intersect, the problem was created after a bug in a software library was not found during the validation process.

This divergence was promptly contained, and the developers confirmed that the network remained functional during the incident. Production and blocking never ceased; the protocol itself continued to run as usual despite transient discrepancies. Staking pool operators encouraged users not to spread false information about a network-wide outage.

Developer reaction and research

In his role as co-founder of Cardano, Charles Hoskinson referred to the event as a calculated move of an aggrieved stake pool operator. He said the wallet used to make the purchase was found within the same day, and law enforcement agencies such as the FBI were put on alert.

The wallet was of an Incentivized Testnet participant. Hoskinson stated that everyone was affected, temporarily, and some of the staking pool operators had lost block rewards because of a double-spend. Developers immediately used a hard fork to unify the chains in order to pull the network business back to normal.

Markus, Cliopools operator, has remarked that at first the branch with the malformed transaction had an increased growth rate with increased stake weight, which points out the temporary benefit of the malformed chain.

Stake pool operator acknowledges guilt

An anonymous user by the name Homer J. took ownership of the incident. The operator claimed that they entered the faulty transaction as a test run to monitor network behavior and did not have any intent to cause harm. Homer made a public apology and admitted the extent of disruption and that they had been following AI-generated instructions in blocking server traffic.

Hoskinson lauded the stability of the network and encouraged all stake pool operators to upgrade to node version 10.5.3. According to him, the two chains would merge completely very soon, hence restoring the network to normal functioning.

After the incident, ADA fell to its lowest price in the past 24 hours, which was more than 5.9%, where it was traded at $0.4013. Developers continue working on the cleanup of the remaining problems and the stability of the network, and the community is recommended to have the latest versions of nodes to minimize the possibility of such incidents.

The post The Cardano network experiences a brief fork after a malformed transaction first appeared on Coinfea.

The holder of the wallet swapped almost all the money to an illiquid stablecoin, and initiated over $6 million losses. Peer-to-peer investigator ZachXBT published the news on November 16, and analysts and market observers take it seriously.

Stagnant wallet mistake causes tremendous loss

According to ZachXBT, the wallet traded 14.4 million ADA worth approximately $6.9 million only with 847 695 USDA. The trade operated a pool of low activity and resulted in a great deal of slippage. It was reported that the pool was tested by the user with 4,437 ADA only 33 seconds before the big swap. The wallet had not been active since September 2020. Analysts said that the user did not have an intent to purchase the less popular USDA token since it was recorded that the user had no previous ownership of the asset.

Investor anxiety and response in the market

The exchange drove ANZA to the range of around $1.26 before going back to $1.04. The abrupt increase in price reflected the danger of huge trades in illiquid pools. Market observers observed that the incident convinced traders never to use pools that are not capable of carrying huge orders. They included that such big mistakes have the potential to destabilize markets and cause turmoil among asset holders. The incident also cast doubts on the intention of the user and whether the exchange was as a result of misunderstanding of similar names of stablecoins.

Earlier stablecoin error fuels industry worry

In October, Paxos made an error, which analysts compared to the Cardano loss. In one such internal transaction, the company accidentally produced 300 trillion PYUSD. It sent it to an inaccessible address and consumed the whole amount in 22 minutes. The unexpected mintage created confusion in the sector and forced Aave to halt PYUSD trading. 

According to data provided by Nansen, PYUSD has taken a slight slip but retained dollar pegging. The International Monetary Fund had noted that the amount minted was actually more than two times the world GDP and far much more than the amount of US dollars that had actually been put to circulation.

The Cardano swap episode highlighted the dangers that illiquid pools and user oversight were associated with. Analysts had warned that such errors may shift markets and hurt confidence. The incident, along with the Paxos mistake that happened recently, underscored the increasing necessity of being more careful in case digital assets keep developing.

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In an interview following his participation in a high-level roundtable on the CLARITY Act, Hoskinson noted massive gains in Washington, mainly citing the fruitful negotiations between lawmakers and crypto industry leaders.

Productive Discussions with Lawmakers

Hoskinson is not the only lawmaker to join the roundtable, as the crypto sector is increasingly getting involved. He complimented Ripple and venture capital firm Andreessen Horowitz (A16Z) because they participated actively in the policy debates. The conference was a subset of a larger effort to help demystify the legal status of digital assets in the U.S., but it was encouraging; the legislators began to realize what the industry needed. Hoskinson observed that the current discussions were much more cordial and productive than during the years past when crypto companies were usually left out in regulatory debates.

CLARITY Act Aims for Comprehensive Regulations

The CLARITY Act aims to provide more transparent regulations on how digital assets should be classified and also aims to create transparency in the market structures. It also describes the duties of the exchanges and issuers. Such a prospective regulation is viewed as another important measure in setting up a more coherent and open system of the crypto market, especially following years of inconsistent policies. The fact that the bill is potentially connected to the Anti-CBDC (Central Bank Digital Currency) bill is an indication of a larger effort to package regulatory changes into a single bill.

Cardano’s Involvement in Policy Shaping

The fact that Hoskinson is actively involved in the discussion also emphasizes the role that Cardano plays in the development of blockchains, as well as the impact it has on the regulation of cryptocurrencies in the U.S. When Cardano is involved in the roundtable, it is an indicator that the project is increasingly becoming a part of the discussion on various policies, and the interests of the ADA holders in the future of regulations should not be neglected. This is twofold because she focuses on both technology development and advocacy of policies, which is why she is a leader in both areas.

Along with Ripple and A16Z, such significant actors as Coinbase, Kraken, and Circle were also present, indicating that the industry supported the CLARITY Act to the maximum extent. The discussions during the event focused on significant issues like categorization of tokens, compliance in exchanges, and disclosure to issuers. The success of such negotiations may have an extensive impact on the way the crypto market would function in the U.S. in the future.

The cooperation between legislators and crypto sector representatives at this roundtable is a sign of change in the ongoing struggle to develop effective and transparent regulations of the digital asset sector.

The post Cardano’s Hoskinson Commends Ripple and the XRP Community first appeared on Coinfea.

ADA has gained support from its holders, considering most of the long-term holders have been on an accumulation streak since 2021. Currently, a significant amount of Cardano is held in reserve wallets aged four years or more, starting a new accumulation period in the spring of 2025. Based on Alphractal data, long-term wallets are more willing to hold, while short-term buyers remain more balanced.

Cardano adopts treasury strategy

Cardano is now being held by whales who are in no rush to sell at the current price. The token has shown the same pattern visible in XRP, where its community has held on to their tokens while hoping for a big breakout. Despite the presence of whales, ADA is one of the few tokens that are widely distributed, with its top 100 users only holding 22.56% of the entire supply.

Cardano is closely being watched for its ability to provide funds to projects and even build its own BTC treasury. The project handed over the reins to the community, which recently voted on a fund distribution for network upgrades, as previously reported by Cryptopolitan. One of the main sources of storage for Cardano is the treasury, containing 1.6B ADA tokens.

The treasury may get distributed gradually in the coming months and years, with some of the supply potentially allocated to acquiring BTC. One of the few scenarios for the Cardano community is for its entire treasury to be allocated to BTC purchases. This is expected to remove Cardano from its previous path as a platform for games and Web3 projects, which never picked up with the same speed as other L1 chains.

ADA experiences reduced trading

Cardano is still fighting to complete another role after showing limited smart contract activity with just $350M in value locked and $37M in stablecoin liquidity. Meanwhile, ADA is still behind when compared to other hotter tokens. Outside the Cardano community, there has been no talk of using ADA to build a crypto treasury company.

ADA’s open interest dropped to around $631M, with a 77% dominance of long positions. The dominance of longs also means ADA may face selling pressure in the short term, causing a liquidation cascade. Short positions are under 23%, though liquidations may happen at the $0.81-$0.82 range. For now, ADA cannot hope for a short squeeze to a much higher range.

On Hyperliquid, ADA has also seen reduced activity, with only five whales taking notable positions. Three positions are long ADA with significant funding fee requirements, while short positions receive funding fees, and some are in profit. While ADA is currently stagnating, data from Alphractal shows that a rally may be in the making, especially if the altcoin bull market continues.

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Ripple stablecoin RLUSD part of wider roadmap

The conversation began when a user asked whether the Ripple stablecoin RealUSD would arrive on Cardano. Hoskinson replied that RLUSD is only one element within a broader initiative that aims to link multiple Ripple related instruments to Cardano’s smart contract framework. His statement positions the stablecoin as a gateway for collaboration and suggests that timing will depend on milestones rather than a single release date. Market watchers say RealUSD is a fully collateralized dollar token that can complement Cardano liquidity while offering familiarity to Ripple users. Analysts argue that linking the two ecosystems could reduce fragmentation and attract new capital flows.

Glacier drops and wallet support under discussion

The new features mentioned by Hoskinson include glacier drops, which is a controlled and phased distribution of tokens, calculated to go in sync with product development. This strategy is synonymous with quality airdrops and can allow rewarding early adopters, avoiding the shock to the market. Cross protocol bridges to transport XRP liquidity to Cardano-based automated market makers are already under development, and both community and developer interest forums point to increased attention of yield farmers seeking diversified yield opportunities that are not currently available on any platform.

Lace wallet support is also planned so that Cardano users will also be able to interact with XRP assets in a native way and make them prepare the smooth cross chain experience. The new convenience might encourage the involvement of holders who have not been able to use XRP in the decentralized finance.

Treasury strategy explores diversified assets

Beyond integration plans Hoskinson outlined a proposal to allocate a fraction of the Cardano treasury to a decentralized sovereign wealth model inspired by national funds. He floated the idea of converting around one hundred million ADA into a mix of stablecoins and Bitcoin to generate yield and reinforce liquidity for Cardano based DeFi. According to the founder the resulting returns could cycle back into purchasing ADA which may support price stability and fund further ecosystem growth.

The suggestion aligns with Cardano’s broader objective of creating self sustaining economic rails that benefit users and developers alike. Community governance procedures will decide whether the treasury allocation moves forward, and early sentiment appears supportive although some participants caution that exposure to volatile assets must be balanced with risk management.

The post Cardano Founder Signals Comprehensive XRP Integration Package on the Horizon first appeared on Coinfea.

The PAC is coming off an announcement from Wyoming to launch a stablecoin backed by the state as it continues to build up to launching its crypto-friendly laws. The stablecoins will be government-backed and will be used for payments, decentralized finance services, and other uses. Cardano has been anticipated to be part of the plan, although no partnership has been formally announced.

Charles Hoskinson’s PAC mission

Charles Hoskinson has been working with both federal and local lawmakers to push crypto-friendly laws. The Cardano boss showed it at the presidential elections in November 2024. “I’m proud to deepen my commitment to Wyoming,” Charles said. “We’re laying down a framework for fairness and transparency so everyone gets a fair shot.”

The Cardano boss claims that the PAC will open the playing field, allowing everybody to get a fair chance so the best idea can win. He basically wants to remove the notion that only well-connected firms win. “Without a solid foundation of trust and accountability, the tech boom could collapse,” Charles said.

Hoskinson worked with lawmaker Tyler Lindholm and former Deputy Secretary of State Karen Wheeler in the past, helping them to understand Blockchain technology. The state was one of the few to establish decentralized autonomous organizations (DAOs) as legal entities. The University of Wyoming is currently running a live demo on the Cardano manner as it intends to show its tech capabilities.

The demo will focus on the ‘Freeze and Seized feature, which will be integral to the newly created stablecoin. The feature will allow the asset to be locked or seized if the need arises, an important feature for stablecoins backed by the government.

The post Charles Hoskinson floats Wyoming Political Action Committee first appeared on Coinfea.

The praise is surprising considering Hoskinson had been at loggerheads with the XRP community over the past few years. While their position has shifted since he urged them to forgive him last year, some of the token’s followers still have bad blood with him. One user was quick to remind him about what he had said about XRP in the past.

Cardano founder takes a dig at the controversial Hex leadership

While his message looked to have painted XRP in a good light, it was also a subtle attempt to take a dig at Hex founder Richard Schueler, also known as Richard Heart. Heart, who also owns PulseChain, has been placed on Interpol’s Red Notice for embezzling $12 million belonging to users. Authorities claimed he was wanted for fraud and violating securities law.

Hoskinson has been discussing Heart’s situation over the last few days, going against users with his trademark. He stated yesterday that he had every right to block any profile with an affiliation to any of his companies. He said the users are devoid of reality, noting how dangerous it is to associate with them.

He used the opportunity to praise his new best friend, XRP, noting how the project is not associated with any scandal. He noted that the community is clear and straightforward. In December 2020, he had an issue with the community after allegations claimed the team behind Ethereum asked the SEC to sue Ripple. He has since tried to repair the relationship, even making a livestream apology in November 2024.

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