New Ethereum Token Standard Targets Real-World Asset Fragmentation

A coalition of Web3 companies has unveiled a new Ethereum token standard aimed at reducing fragmentation and streamlining compliance in the rapidly growing real-world asset (RWA) sector. The standard, ERC-7943, introduces a minimal, modular interface that works across Ethereum layer-2 networks and Ethereum Virtual Machine (EVM) chains, while remaining independent of specific vendors or infrastructures. This approach ensures interoperability without locking developers into a particular company’s tools.

Universal Layer for Tokenized Assets

Dario Lo Buglio, co-founder of Brickken and author of the Ethereum Improvement Proposal (EIP)-7943, described the standard as a “universal layer” that can sit on top of any token type. This allows developers and institutions to integrate tokenized assets into applications without relying on wrappers or custom bridges. ERC-7943 is backed by multiple Web3 and fintech firms, reflecting broad industry support.

Addressing Institutional Demand

Lo Buglio explained that EIP-7943 emerged in response to growing institutional interest and developer frustration. Data from RWA tracker RWA.xyz shows the total value of tokenized RWAs onchain has reached $28.44 billion, rising nearly 6% over the past month. Stablecoin values and asset holders have also grown significantly, indicating rapid adoption by financial institutions. Lo Buglio emphasized that institutions seek programmable controls aligned with compliance frameworks, while developers face inefficiencies due to custom implementations for each RWA token.

Review Stage and Community Feedback

The standard is currently in the review phase of the EIP process, receiving input from compliance professionals and other token standard authors. Lo Buglio noted that this stage is crucial for refining the proposal and incorporating industry feedback.

Tackling Fragmentation and Enhancing Composability

Previous attempts to standardize RWA tokenization, such as ERC-1400 and ERC-3643, offered compliance and identity features but came with limitations. ERC-1400 introduced a hybrid model blending fungible and non-fungible token functionality, while ERC-3643 focused on regulated securities with built-in identity and permissioning layers. In contrast, ERC-7943 emphasizes a minimal, implementation-agnostic interface that defines only the essential components, allowing projects to integrate it seamlessly into existing systems. Lo Buglio highlighted that the primary goal of the new standard is to unify compliance functions and reduce industry fragmentation, creating a common foundation for both developers and financial institutions.