September 16, 2025

ERC-7943: A New Tokenization Standard for Real-World Assets

TL;DR

Institutions want to tokenize real-world assets. Until now, the missing piece was a shared, compliant standard.

Why this matters: Tokenized assets are booming, but fragmentation still blocks scale and trust.

The fix: ERC-7943 introduces an open, modular, and regulation-aligned framework.

Who’s behind it: Co-authored by Brickken’s co-founder Dario Lo Buglio and backed by 10+ global Web3 and fintech firms.

Real-world impact: Simplifies compliance, cuts vendor lock-in, and makes tokens more composable.

Next step: Work for the new standard adoption among institutions that now could launch tokenized assets using unified tools.

The Challenge: A Fragmented RWA Landscape

Tokenization is moving fast. Over $28 billion worth of real-world assets (RWAs) are already on-chain. From U.S. Treasuries and tokenized funds to real estate and commodities, momentum is building. Yet, a core problem remains: fragmentation.

Many tokenization efforts still rely on proprietary systems. These systems often lack interoperability, offer limited compliance tooling, and create vendor lock-in. Developers must rewrite logic for each use case. Institutions struggle to align tokens with regulatory frameworks. As adoption grows, so does the need for shared standards.

Fragmentation increases cost, reduces flexibility, and undermines trust. Without common foundations, the RWA ecosystem risks becoming siloed. This limits innovation across finance, technology, and capital markets.

ERC-7943: Built for the Next Phase of Tokenization

ERC-7943 is an open Ethereum token standard supported by leading RWA and fintech companies, including Brickken. It defines a minimal, implementation-agnostic interface for compliant RWA tokenization.

This framework introduces three key principles:

  • Modularity: Separates logic for identity, compliance, and permissions into distinct components. Developers can implement what they need without overhauling entire systems.
  • Neutrality: Platform-agnostic and vendor-neutral. Prevents lock-in and promotes collaboration across infrastructure providers.
  • Institutional Alignment: Meets compliance, reporting, and operational needs. Helps enterprises adopt tokenized finance with confidence.

By keeping the standard minimal, ERC-7943 avoids prescribing specific technology stacks. It focuses only on the essential functions required for secure, transparent, and compliant asset representation.

This approach makes ERC-7943 flexible enough for startups and powerful enough for institutional use cases.

Where Previous Standards Fall Short

Before ERC-7943, Ethereum had other standards like ERC-1400 and ERC-3643 aimed at tokenizing regulated assets.

  • ERC-1400 introduced a hybrid structure blending features of fungible and non-fungible tokens. While powerful, it tightly couples logic and storage, limiting flexibility.
  • ERC-3643 is strong for securities. It adds on-chain identity and permissioning layers to support KYC and AML. But it is dependent on its own identity structure, making integration harder.

ERC-7943 takes a different approach. It does not dictate how these components should be built. Instead, it defines what must exist. This enables compatibility across platforms while maintaining full developer flexibility.

Dario Lo Buglio on the Future of RWA Standards

"Institutions have struggled to meet compliance requirements with blockchain’s open architecture," says Dario Lo Buglio, Brickken’s co-founder and lead author of ERC-7943.

"ERC-7943 bridges that gap. Its modular structure makes integration seamless, and the shared community support gives us the confidence to go live with production-level RWA use cases."

Dario has always championed open, standards-based infrastructure that actually works in the real world. As demand from institutions grows, he's been instrumental in bringing together developers, compliance teams, and infrastructure providers to push toward a more unified and usable standard.

He emphasizes that ERC-7943 is more than a technical document. It’s a foundation for collaboration:

"Financial institutions want programmable controls that match their compliance frameworks. Developers are tired of rewriting custom logic for every RWA token. We needed a shared foundation. ERC-7943 is that foundation."

Real-World Value: Why ERC-7943 Is Timely

Tokenized RWAs have surpassed $28 billion in value on public chains. Growth is accelerating, particularly in treasury-backed assets, money-market funds, and private credit. But for tokenization to scale further, compliance and interoperability must be simplified.

ERC-7943 is timely because it addresses four urgent needs:

  • Cross-platform composability: Works across Ethereum mainnet, Layer 2s, and EVM-compatible chains.
  • Compliance integration: Makes it easier to align tokens with regional and global regulations.
  • Reduced technical overhead: Developers don’t need to rebuild core functions for every project.
  • Lower adoption risk: Institutions avoid vendor lock-in and can switch providers without breaking compatibility.

This is especially critical for financial institutions that want to tokenize equity, debt, and funds while maintaining control over data, governance, and reporting.

Backed by a Global Coalition

ERC-7943 isn’t just a concept. It’s a living standard already being tested and implemented by a wide coalition of contributors. These include: Brickken, Bit2Me, DigiShares, Dekalabs, Hacken, Compellio, RealEstate.Exchange, Stobox, FullyTokenized, Forte Protocol, Zoth.

The standard has entered review in the Ethereum Magicians forum and has already been showcased at EthCC with early adoption success. Community feedback continues to shape refinements and use case extensions.

What This Means for Institutions

Tokenization is no longer an experimental trend. It’s becoming a strategic imperative for asset managers, banks, and enterprises.

Standards like ERC-7943 reduce barriers to entry. They remove friction for compliance teams, streamline developer workflows, and open pathways to liquidity and investor trust.

In practical terms, this means:

  • Faster launches: New tokenized offerings can go to market without months of custom development.
  • Improved scalability: Institutions can replicate successful structures across multiple assets and jurisdictions.
  • Better transparency: Investors and regulators gain visibility through shared interfaces and audit-ready architecture.
  • Expanded access: Modular design supports both retail and institutional participation. No closed systems required.

This is especially relevant for firms issuing tokenized securities, funds, and structured products in growing jurisdictions across Europe, LATAM, and Asia.

Final Thoughts: Standards Drive Growth

ERC-7943 represents a turning point in the journey to mature, interoperable, and institutionally aligned tokenization. It provides what the RWA sector has long lacked: a shared foundation that supports innovation without compromise.

Its modular design and open structure solve not just technical problems. They solve business problems too. From lowering cost of implementation to enabling regulatory clarity, ERC-7943 marks a shift in how tokenized finance is built.

And with Brickken playing a key role in both its design and deployment, the standard reflects not just market demand, but real-world readiness.

Would you like to know more about tokenization? Book consultation with our experts.

By
-