Canton Foundation explains CIP-56, a Canton-wide token standard that unifies how assets are represented and transferred on Canton, embedding interoperability, privacy, and compliance for institutional finance use cases.

CIP-56 is a Canton Network–wide token interface standard that defines a uniform way to issue, represent, and transfer tokenized assets on Canton, with built‑in support for interoperability, privacy, and regulatory workflows aimed at institutional finance. It is conceptually comparable to Ethereum’s ERC‑20, but extends that model with features such as selective disclosure, multi‑step permissioned transfers, and native Delivery‑versus‑Payment (DvP) settlement, all implemented in Canton’s DAML smart contract environment. According to the Canton Foundation’s CIP‑56 specification, the standard provides a common API for balances, transfers, approvals, and transaction history so that wallets, custodians, and applications can integrate any compliant token without bespoke logic. At the core is a standardized transfer function that supports free‑of‑payment transfers, bilateral transfers, and atomic DvP, enabling assets and payments to settle together in a single operation, which is critical for repo, securities settlement, and other capital markets workflows. CIP‑56 is designed for selective privacy: holdings and transaction details are only visible to parties that need to know, aligning the network with institutional requirements around confidentiality while still enabling composability across applications. This standardization is emerging as the backbone for Canton’s institutional ecosystem, underpinning real‑world asset tokenization and institutional stablecoins and wrapped assets such as USDCx and cBTC, which are already supported by custodians like BitGo and wallet infrastructure providers such as Dfns. By embedding KYC/AML controls, admin‑configurable transfer permissions, deterministic finality within seconds, and predictable transaction costs, CIP‑56 seeks to bridge traditional financial infrastructure and DeFi‑style composability, offering a framework for regulated institutions to move large volumes of assets and collateral on‑chain without compromising on compliance or operational control.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• What is CIP-56? A Guide to Canton's Token Standard (canton.network)
• BitGo Extends Canton Network Infrastructure to CIP-56 Token ... (businesswire.com)
• Canton Token Standard Support - DFNS (dfns.co)
• BitGo Extends Canton Support to the CIP-56 Token Standard (bitgo.com)
• CIP-0056 Canton Network Token Standards (lists.sync.global)

Explore the topic

• Institutional Adoption
• Canton Network
• compliance