ERC-3643 is looking for ways to bring compliance to RWA tokenization

ERC-3643 is designed to deny transactions or actions if counterparties fail to meet compliance requirements


Shubham Dhage/Unsplash and Adobe modified by Blockworks


The ERC3643 Association recently revealed a new UI plug-in tool that will enable DeFi protocols to run checks in compliance with the ERC3643 standard.

The ERC3643 standard, also known as the T-REX (Token for Regulated Exchanges) standard, is a modification of ERC-20. 

Unlike the ERC-20 token, ERC-3643 is a permissioned token that uses smart contract technology to define conditional transfer functions. 

This means that decentralized validators can only approve certain transactions after they have met predetermined rules. This enables compliance structures that can be used for regulated assets, like securities, while retaining the standard of ERC-20 functionality. 

This new UI tool was developed in collaboration with DevPro and Tokeny and enables ERC-20-compliant DeFi applications to interact with permissioned ERC-3643 tokens. This includes real-world assets, token securities, loyalty tokens, stablecoins and CBDCs

Read more: Ethereum Improvement Proposals to watch in 2024

Dennis O’Connell, president of the ERC-3643 Association, told Blockworks that compliance rules are directly embedded through ERC-3643 at a token level.

“As an extension of ERC-20, ERC-3643 ensures interoperability with any ERC-20-supporting applications. The key distinction lies in denying transactions or actions if counterparties fail to meet compliance requirements, effectively bridging compliance and interoperability,” O’Connell said. 

He notes that, unlike other standards that use wallet whitelisting for know-your-customer (KYC) checks, ERC-3643 uses digital identity to whitelist users through verifiable credentials. 

“This ensures the compliance validation process is entirely on-chain while protecting privacy. No actual data will be published on-chain; only verifiable credentials, which are proofs of verification by trusted parties appointed by token issuers,” O’Connell said. 

Read more: Dencun and Pralectra: Ethereum core devs chart an ambitious 2024

The standard was initially proposed to the Ethereum community in 2021, but did not receive approval until December last year. Companies currently exploring this technology include APEX Group, Aztec Group and Capgemini, to name a few.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?


Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month


It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet


Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend


Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million


Plus, funds go to a platform making development on Solana easier