CMTAT's Solidity implementation of the CMTAT global framework for chain-agnostic asset tokenization, can now be bridged across multiple blockchain networks using LayerZero's OFT.

The Capital Markets and Technology Association (CMTA) today announced the integration of LayerZero, the interoperability protocol connecting assets across 168+ blockchains with CMTAT Solidity, an implementation of its global framework for the tokenization of financial securities.

This development allows CMTAT tokens to be transferred to any of the EVM-based blockchains supported by LayerZero as natively issued tokens, significantly increasing the options available to issuers, institutions and platforms looking to use the CMTAT framework for asset tokenization.

The project developed by Nox Labs provides a LayerZero adapter for CMTAT tokens, enabling cross-chain transfers between supported networks. The adapter integrates the Omnichain Fungible Token (OFT) standard with the CMTA Token Standard (CMTAT) through ERC-3643 and ERC-7802 interfaces for Ethereum and other EVM chains, allowing tokens to be burned on a source chain and minted on a destination chain.

This implementation enables CMTAT-based tokens to use LayerZero’s omnichain capabilities, facilitating secure and efficient cross-chain transfers while ensuring a unified supply and maintaining compliance-oriented features such as transfer restrictions.

To ensure suitability and alignment, the project underwent additional review by CMTAT maintainer Ryan Sauge at Taurus and by CMTA's Technical Committee.

The full technical details, documentation, and source code are publicly available in the project repository:
https://github.com/CMTA/CMTAT-LayerZero

Key Features of the Implementation

The solution developed by Nox Labs provides a tool for omnichain tokenized securities, including:

• Cross-chain token transfers: Seamlessly bridge CMTAT tokens between different blockchain networks

• LayerZero V2 integration: Built on the LayerZero V2 protocol for secure and efficient cross-chain messaging.

• Standards compatibility: Compatible with tokens implementing ERC-3643 and ERC-7802

• Full CMTAT compatibility: Integration with CMTAT’s standard burn-and-mint functionality as well as cross-chain burn-and-mint mechanisms.

• Automated Scripts: Ready-to-use Foundry scripts for deployment and operations

Interoperability for Tokenized Securities

As tokenized securities gain broader institutional adoption, the need for wider distribution channels and portability between different platforms means that infrastructure needs to be increasingly multi-chain. Different blockchain networks offer distinct advantages, such as settlement efficiency, privacy features, regulatory alignment, or access to specific liquidity pools and investor communities. In this context, the ability to transfer securities across networks is becoming a key infrastructure requirement.

In practice, trading venues, custody providers, and settlement systems are not always present on the same chain. As a result, issuers and investors may need to move tokenized instruments between ledgers to access liquidity or integrate different financial market infrastructures.

In traditional capital markets, securities can move between custodians, central securities depositories, and trading venues. A comparable level of interoperability will be essential in tokenized markets to facilitate institutional adoption.

LayerZero’s OFT is the market-leading cross-chain token standard, providing a technical foundation for this, enabling tokenized assets to move securely between networks while preserving a unified supply and ensuring that fundamental features of the security (such as transfer restrictions) are maintained.

Transferring Financial Instruments Across Chains

A tokenized security must mirror the behaviour of the financial instrument it represents. Financial instruments require compliance mechanisms not typically found in payment tokens, such as freezing capabilities, transfer restrictions, and conditional transfers. When a tokenized instrument is transferred between blockchain networks, it is essential that these controls and permissions remain intact in the newly issued tokens.

Another critical requirement is maintaining a unified supply, ensuring that bridging mechanisms do not result in multiple tokens being issued for the same security at the same time – leveraging LayerZero’s standards allows for CMTAT tokens to maintain unified supply and feature parity across chains.

LayerZero’s OFT model offers both lock-and-mint and mint-and-burn cross-chain transfer models. The CMTA chose the latter to allow for tokens to be burnt on the source chain and the same number of tokens to be minted on the destination chain. Further, the OFT standard debits tokens from a sender on the source chain and credits the same amount to a receiver on the destination chain, with LayerZero transmitting the message that coordinates this accounting process. This facilitates a verifiable process for maintaining the total token supply remains consistent across all networks.

Facilitating Digital Capital Markets

The integration of omnichain functionality into CMTAT reflects CMTA’s objective of advancing tokenized securities and digital assets by providing open-source, production-ready tools.

The collaboration between CMTA members Nox Labs and Taurus, together with CMTA’s Technical Committee and LayerZero Labs, has produced a practical solution to support market participants in accessing broader distribution channels and expanding the range of blockchain infrastructures available for tokenized securities.

Important Notice

CMTA also carries out tokenization certification, assessing tokenization projects for conformity with applicable standards in certain jurisdictions.

The ability to issue or transfer a CMTAT token to a particular blockchain using omnichain or cross-chain mechanisms does not imply that the blockchain conforms to the criteria set out in CMTA’s jurisdiction-specific standards or certification schemes.

Technical details and source code: https://github.com/CMTA/CMTAT-LayerZero

Download the specification below: