Hedera expands asset tokenization studio with dual standards for global compliance
Hedera's Asset Tokenization Studio has adopted a dual token standard, incorporating ERC-3643 and ERC-1400. The integration of ERC-3643 facilitates modular, globally compliant tokenization suited for non-U.S. jurisdictions, while ERC-1400 focuses on U.S.-centric equity and bond issuance. This dual-standard approach provides flexibility for issuers to adapt to varying regulatory needs. The open-source Asset Tokenization Studio allows institutions to design and launch regulated digital assets, with ERC-3643 offering tools for managing compliance parameters and creating jurisdiction-specific tokens.
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Hedera Implements Dual Token Standards
Hedera’s Asset Tokenization Studio has adopted a dual token standard by integrating ERC-3643 into its framework. This addition helps institutions launch compliant and modular digital assets on its blockchain network, expanding its tokenization capabilities.
ERC-3643 and ERC-1400 Overview
The introduction of ERC-3643 complements the existing ERC-1400 token standard. While ERC-1400 is U.S.-centric and primarily used by equity and bond issuers, ERC-3643 offers a global, modular approach aimed at institutions outside the U.S., providing them with the flexibility needed for regulatory compliance in non-U.S. jurisdictions.
Open-Source Toolkit for Asset Tokenization
Hedera’s Asset Tokenization Studio is an open-source toolkit designed to enable institutions and fintech companies to tokenize assets. By adding support for ERC-3643, Hedera opens its ecosystem for regulated asset issuance, further advancing the adoption of blockchain-enabled tokenization.
Flexibility of Dual Standards
The integration of dual token standards introduces flexibility for token issuers. Depending on regulatory and market needs, issuers can choose between ERC-1400 and ERC-3643. According to Dr. Sabrina Tachdjiann, Vice President of Financial Markets for Asia Pacific at Hedera Foundation, this update reflects the market's movement toward customizable, borderless, and standards-based tokenization frameworks designed to empower adopters globally.
Features and Benefits of ERC-3643
ERC-3643 empowers global institutions by providing a modular framework that allows them to maintain control as token issuers. With this standard, users can handle tasks such as:
- Defining compliance parameters
- Filling out metadata fields
- Adapting tokens to meet local jurisdictional requirements This ensures the creation of globally compliant digital assets, making tokenization flexible and practical for different regulatory environments.