ERC3643 Association Members Developed Open Source UI Components To Bridge DeFi and Regulated RWA

Press Release
January 22, 2024

The ERC3643 Association is excited to release a powerful open-source plug-in UI component for the ERC-3643 standard, allowing DeFi protocols to run compliance checks and provide an actionable alert notification UI for ERC-3643 tokens.

Developed collaboratively by association members, DevPro and Tokeny, this plug-in is set to allow any ERC-20 compatible DeFi applications to interact with permissioned tokens issued with the ERC-3643 standard, including real-world assets (RWA) tokens, tokenized securities, loyalty tokens, stablecoins, and CBDCs. This component allows DeFi applications to run compliance checks, which is the difference between ERC-20 tokens and ERC-3643 tokens.

It’s important to note that the ERC-3643 standard, while being an extension of ERC-20, primarily offers a compliance layer required for securities tokenization, yet it still retains its interoperability with any application that supports ERC-20 tokens.

ERC-3643 brings compliance to DeFi

Integrating the ERC-3643 standard is designed to bring compliance into the realm of permissionless DeFi, traditionally unsuitable for regulated assets, particularly tokenized securities such as tokenized funds, equity, debt, money market funds, t-bills, and more. The ERC-3643 tokens ensure that unauthorized transactions are avoided, ensuring only qualified users can trigger transactions, even in DeFi, as compliance is enforced on-chain at the token smart contract level.

The need for a better UX with permissioned tokens

By default, ERC-3643 tokens are compatible with DeFi protocols that support ERC-20 tokens in the same network, as ERC-3643 is a compliance extension of ERC-20. However, a major hurdle has been the lack of clarification for users, particularly regarding denied actions or transactions. Users often find themselves in the dark, with no explanation for the reason for transaction rejections and actions to resolve issues, leading to frustration and confusion.

Actionable alert component bridging ERC-3643 to any DeFi dApp 

By introducing this notification UI component to DeFi applications, a free SDK tool, developers can now easily incorporate this feature into their DeFi protocol to allow users to interact with ERC-3643 tokens. This tool not only informs users of the specifics behind denied transactions but also provides an actionable link to redirect users to the token initial issuance platform to get qualified. As a result, token issuers and their KYC agents are always in control of their investors to meet regulatory requirements while allowing users to use DeFi services. 

Check the open-source codes on GitHub here.

Dev.Pro has forked the open-source version of Uniswap for demonstrating the UI component.

About ERC3643 Association

The ERC3643 Association is a non-profit organization regrouping industry leaders within a shared mission to advance the adoption of the ERC-3643 standard and promote the development of a standardized, secure, and compliant tokenization framework. The association brings together the expertise and resources of its members to foster collaboration, drive innovation, and create a more inclusive, efficient, and secure financial landscape. By supporting the widespread adoption of the ERC-3643 standard, the association aims to unlock the full potential of tokenization and pave the way for a new era of global asset management.

For More Information, Contact:

Ivie Satijn

Communication manager at ERC3643 Association 



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About Tokeny

Tokeny provides a compliance infrastructure for digital assets. It allows financial actors operating in private markets to compliantly and seamlessly issue, transfer, and manage securities using distributed ledger technology. By applying trust, compliance, and control on a hyper-efficient infrastructure, Tokeny enables market participants to unlock significant advancements in the management and liquidity of financial instruments. The company is backed by strategic investors such as Apex Group and Inveniam.

For More Information, Contact:

Shurong Li

Head of Marketing at Tokeny



About Dev.Pro

Dev.Pro is a software development company that builds, integrates, and consults on custom Fintech, Payments, and Blockchain solutions. Clients vary from startups to Fortune 500 businesses, with a significant footprint in the digital assets industry. Major client products for companies like: Coinsquare, Inveniam, Securrency (now DTCC Digital Assets), and many more.

For More Information, Contact:

Kostiantyn Dmitriiev

Head of Fintech Products at Dev.Pro



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