ERC-3643

Standard for regulated tokens and permissions that meet legal requirements such as KYC and AML.

What is it? - 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, ClaimTopics Registry, TrustedDissuersRegistry, 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 (frozen of tokens), ForcedTransfer (forced transfer), recovery (recovery due to loss of keys) and Batch Operations, all in compliance with regulations such as MiCA in Europe, CNMV in Spain, or Marcos like ERIR.

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.

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.
  • Compatible with European legal frameworks such as MiCA and ERIR.
  • Advantages

  • Direct legal compliance in the contract: Avoid regulatory risks.
  • Legal and technical security for issuers and inverters.
  • 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.
  • 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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