GLOSSARY · BLOCKCHAIN & WEB3
ERC-3643
Standard for regulated tokens and permissions that meet legal requirements such as KYC and AML.
WHAT IS IT? · FOR DUMMIES
The ERC-3643 standard is like a token with rules.
Unlike other tokens that anyone can buy or sell, this one can only be used if you meet certain conditions, such as having verified your identity.
It is very useful for representing company shares, bonds or other regulated assets, where the law requires us to know who buys or sells them.
WHAT IS IT? · PRO
ERC-3643, formerly known as T-REX, is a token standard on Ethereum and compatible EVM networks designed specifically for the issuance and management of regulated tokenized assets, like stocks, bonds, shares of companies or financial instruments which require legal movement restrictions.
Unlike better known standards such as ERC-20 or ERC-721, ERC-3643 natively incorporates mechanisms of access control, identity verification (KYC/KYB), AML (Anti-Money Laundering) compliance and regulatory authorization at the smart contract level.
Its architecture is based on a modular infrastructure composed of specialized contracts like IdentityRegistry, ClaimTopicsRegistry, TrustedIssuersRegistry, Compliance and Token.
This allows the creation of tokens that can only be transferred if both the issuer and the receiver meet a series of predefined requirements (such as being verified by a trusted issuer, being located in an approved jurisdiction or belonging to a whitelist).
In addition, it allows advanced features such as freezing, forcedTransfer, recovery (in case of key loss) and batchOperations. These are useful controls for applying the transfer restrictions required by securities rules: MiFID II and, in Spain, Law 6/2023, with the CNMV as supervisor and a designated ERIR (the entity responsible for registering and recording securities represented by distributed ledger technology, Arts. 7 and 8 of Law 6/2023) keeping the register (Arts. 7 and 8 of Law 6/2023, BOE-A-2023-7053).
This ability to integrate legal compliance directly into the smart contract offers a powerful solution for tokenizing real assets (Real World Assets, RWA) and facilitating their circulation without relinquishing the regulatory control required by the authorities. ERC-3643 is key to building the infrastructure of the regulated digital finance, open up new investment models and allow institutional actors to participate in Web3 in a secure, traceable and legal manner.
01 / Key points
- Standard designed to tokenize regulated assets such as stocks or bonds.
- It requires identity validation (KYC/KYB) and legal compliance.
- It controls transfers through logic integrated into the contract.
- It allows you to recover tokens, freeze them or forcibly transfer them.
- Designed for tokens with transfer restrictions. If the token is a financial instrument, it is governed by MiFID II and Law 6/2023, not by MiCA (Art. 2(4) of Regulation (EU) 2023/1114).
02 / Advantages
- Compliance built into the contract: it automatically enforces the transfer restrictions required by regulation, though it does not replace legal analysis or the authorizations the issuance may need.
- Legal and technical certainty for issuers and investors.
- Modular and flexible: adapts to different regulatory frameworks and jurisdictions.
- Ideal for real financial assets (RWA) such as stocks, debt or funds.
- Interoperable in EVM networks such as Ethereum, Polygon, Arbitrum, or BNB Chain.
03 / Disadvantages
- Increased technical and legal complexity versus standards such as ERC-20.
- You need a validation and issuance infrastructure (DID, registries, issuers).
- Higher operational and regulatory costs to other tokens.
- Limited adoption yet versus simpler standards.
- Requires legal support and specialized consultancy to implement it properly.
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