ERC-3643 – The Official Token Standard for Compliant RWA Tokenization
New Standards for a New Era
The security token industry requires common technical standards to benefit from the underlying shared network. Of these, the Ethereum network has so far been the most active, resilient and offers the best interoperability through smart contracts. The ERC-20 standard on the Ethereum network showcased a significant and important innovation in regards to the seamless flow of capital from one peer to another, but it doesn’t allow for the enforcement of transfer rules and compliance regulations that exist in capital markets.
In light of this, several standards were proposed to enforce these rules. And T-REX Protocol was the first and only permissioned token standard that has been officially recognized by the Ethereum community, known as ERC-3643. For these standards to take advantage of the blockchain’s interoperable nature, it’s fundamental they are open source and audited.
The two main security token standards in the market are the ERC-3643 (ex-T-REX) and the ERC-1400. They use a different approach but can enrich each other thanks to the code’s composability. Both of the standards enable the enforcement of compliance rules and the control of transfers to eligible investors.
The ERC-3643 manages compliance by leveraging the security of the blockchain with an automatic validator system. This system applies the transfer rules related to users (identities) and those related to the offering. The issuer of the securities, or its agent, always keeps control of the tokens and the transfers. ERC-1400 is another approach where each trade must be validated by a specific key generated offchain.
The ERC-3643 at a Glance
ENCODE COMPLIANCE
Transfer rules are embedded in the securities.
CONTROL SECURITIES
Issuers/agents control the tokens, even with investor self-custody.
REDUCE COST
Reduce fees with T+0 automated onchain settlement.
INCREASE TRANSFERABILITY
Unlock high functioning assets and improve liquidity.
ERC-3643 vs ERC-1400
The ERC-3643 Key Benefits
Increase security and reduce vulnerabilities
Ensure reporting accuracy & efficiency
Control operations and apply automation
Reduce gas costs and increase efficiency
ERC-3643 in Usage
120+
FUNCTIONS
180+
JURISDICTIONS ENFORCED
€28BN
TOKENIZED VALUE FOR CUSTOMERS
120+
issuers and FIs
Trusted by recognized players and government
Trusted by recognized players and government
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Modernize your securities with the leading security token standard, the ERC-3643.