The Capital Markets and Technology Association (CMTA) today announced that its CMTAT Solidity implementation now supports the ERC-7943 standard, aligning its compliance-related functions with emerging Ethereum standards to help reduce fragmentation in the tokenization of regulated financial instruments.

ERC-7943 (also known as Universal RWA or uRWA) is an Ethereum token standard defining a minimal, modular interface for compliance-related events and transfer-restriction errors designed to sit atop existing token standards. By focusing only on essential functions required for asset representation, ERC-7943 aligns closely with the CMTA Token Framework’s approach to the tokenization of financial instruments, which defines required and optional functions in a technology agnostic way. Integrating ERC-7943 support reinforces the CMTAT version available for Ethereum and other EVM-based chains by improving interoperability and international compatibility.

ERC-7943 was authored by Dario Lo Buglio, Co-Founder and Head of Blockchain at Brickken. CMTA collaborated with Brickken on the incorporation of ERC-7943 into the CMTAT Solidity implementation.

A universal compliance layer

A token must mirror the behavior of the financial instrument it represents. Tokenized instruments require compliance functions such as freezing, carrying out forced transfers, restricting transfers to authorized participants, or making transfers conditional on prior approval, as outlined in the CMTAT Framework.

ERC-7943 aims to define a universal compliance layer for those functions in tokenized assets by introducing shared methods that allow developers, platforms, and institutions to check permissions and enforce rules in a standardized manner.

Release v 3.2.0 of the CMTAT Solidity implementation has incorporated the interface elements of ERC‑7943 to provide standardized hooks to check if an account can transact, verify if a transfer is allowed, freeze balances, or enforce a forced transfer when required. Specifically, the implementation extends the existing enforcement and validation modules to add a setFrozenTokens function, emit standardized ERC‑7943 events for forced transfers and frozen tokens, and introduce revert conditions (e.g., ERC7943InsufficientUnfrozenBalance) when active balances are insufficient. Additional compatibility enhancements include support for canTransact and alignment of transfer‑validation error signalling across modules.

To complete compliance features for tokenized financial instruments, CMTAT's Solidity implementation also has optional modules for RBAC and whitelisting through a rule engine.

Increasing Interoperability for Tokenized Financial Instruments

Support for ERC-7943 improves interoperability between CMTAT-based tokens and other smart contracts, platforms, and services that use the same standard. This facilitates smoother integration across issuance platforms, custody solutions and marketplaces. Such interoperability is particularly important in institutional environments, where tokenized financial instruments must interact reliably with a broad range of systems.

The integration of ERC-7943 reflects CMTAT’s commitment to aligning its Solidity implementation with relevant Ethereum Improvement Proposals (EIPs) and ERC standards as they mature. ERC-7943 is progressing through the Ethereum standards process toward finalization. By incorporating recognized standards into its Solidity implementation, CMTAT helps promote consistency, reduce fragmentation, and support long-term maintainability within the Ethereum ecosystem.

For institutional stakeholders, alignment with established and emerging standards is a key element in mitigating technical risk and ensuring compatibility with evolving blockchain infrastructure.

Standards accelerating institutional tokenization adoption

CMTAT and ERC-7943 share a common approach grounded in openness and interoperability rather than proprietary design. CMTAT is developed as an open, blockchain-agnostic framework, with the objective of supporting broad adoption and long-term ecosystem compatibility. Similarly, ERC-7943 reflects a community-driven approach to standardization within the Ethereum ecosystem. This shared commitment to open standards helps reduce vendor lock-in, facilitates independent review and auditability, and supports institutional confidence in tokenized financial infrastructures across different jurisdictions.

As the financial sector accelerates its transition to blockchain-based infrastructure, token standards will be critical. Integrating ERC-7943 into CMTAT offers institutions a tested, flexible, and open-source solution to issue tokenized financial instruments with easier alignment across jurisdictions and simpler technical integration.

View the release: Release v3.2.0 · CMTA/CMTAT · GitHub

About ERC-7943

ERC-7943, also referred to as Universal RWA (uRWA), is an emerging Ethereum token standard designed to support the compliant tokenization of real-world assets. The standard was authored by Dario Lo Buglio, Co-Founder and Head of Blockchain at Brickken and is backed by a global coalition of contributors including Brickken, Bit2Me, DigiShares, Dekalabs, Hacken, Compellio, RealEstate.Exchange, Stobox, FullyTokenized, Forte Protocol and Zoth.

About CMTAT

The CMTAT is a smart contract framework for the tokenization of securities on distributed ledgers such as blockchains. It is chain-agnostic, meaning it can be implemented on various public or permissioned blockchains, with current versions available for Ethereum, Tezos, Aztec and specifications for Solana. The framework is modular, supporting the on-chain execution of corporate actions such as distributions.

The CMTAT Framework is published by the Capital Markets and Technology Association. The development of the CMTAT framework and implementations is overseen by the Technical Committee of CMTA's Advisory Board and implemented by Taurus.