ERC-3643: The Motherboard for Composable Tokenized Assets

“What token standard does your platform support?” This is a question we hear often. As a regular reader of our newsletter, you might think, “Tokeny? They’re an ERC-3643 platform.” But that’s only part of the story.

Think of ERC-3643 as a Lego motherboard. It’s the fundamental base, the piece that holds everything else all together. The real magic happens when you start adding multiple smart contract blocks. What makes its composability powerful is the ability to reuse existing and proven smart contracts.

Here are a few of the most common “add-on blocks” our clients add to their tokenized assets:

• Smart contracts ensure compliance: Compliance contracts make sure that only approved identities can hold tokens. They also set rules for when and how tokens can be transferred, blocking any unauthorized moves.

• Smart contracts enrich asset onchain data: Asset identity contracts let you add data to assets, like ISIN, LEI, net asset value (NAV), and ESG ratings, making it easy for other platforms, such as distributors, to access this information quickly.

• Smart contracts enable distribution: Distribution contracts control where the tokens can be distributed. In addition, Delivery vs. Delivery (DvD) contracts can automate buying and selling. If all requirements are met, DvD swaps will happen, without counterparty risks.
• Smart contracts automate corporate actions: Corporate action contracts handle tasks like paying dividends or coupons, making middle and back office operations faster, smoother, and safer.

ERC-3643 isn’t here to compete with other token standards, it’s designed to work alongside them, offering composability and complementing their functionality. We act as a smart contract factory to ensure the smooth deployment and management of all smart contracts associated with tokens. The future of onchain finance is composable and interoperable, we are passionate about building products to achieve that vision.

Please do not hesitate to contact us if you have any questions regarding this topic.

P.S. What is more exciting is that this week, ERC-3643 was recognized as the official standard in Project Guardian by the Monetary Authority of Singapore (MAS) for ensuring compliance in tokenized debt instruments and funds. Check out more details here.