The token standard ERC-3643, designed specifically for RWA, addresses regulatory challenges in asset tokenization through built-in identity verification and compliance engines, promoting financial innovation. This article is sourced from a piece by BEOSIN, organized, translated, and written by PANews. (Background: Avalanche bets on RWA: second-level settlement + customized subnets, aiming to capture $250 million assets from traditional financial giants) (Additional background: Christie's allows buying houses with cryptocurrency, a new milestone in the RWA track) In the process of integrating blockchain technology with traditional financial markets, RWA has become one of the most transformative innovation areas. However, due to the lack of regulatory compliance frameworks and industry standards, the tokenization of real-world assets (RWA) has long faced developmental bottlenecks. Against this backdrop, the ERC-3643 standard emerged as the first Ethereum token standard designed for regulated assets. Unlike the generic ERC-20 standard, ERC-3643 constructs a technical architecture that complies with securities regulations while retaining the efficiency advantages of blockchain through built-in identity verification and automated compliance engines, resolving the core contradiction of on-chain traditional financial assets. In this article, the Beosin security team will analyze the ERC-3643 token standard, compliance characteristics, and application scenarios. ERC-3643 Token Standard Analysis 1. Token Specifications ERC-3643 addresses the core needs of compliant asset tokenization through a modular architecture. This separation design achieves decoupling of business logic, giving the system high configurability. The most critical aspect is the separation of the identity registry from the compliance contract, allowing compliance rules to be flexibly adjusted according to jurisdictional requirements without changing the core logic of the token. When a user initiates a transfer, the token contract automatically queries the compliance contract, which cross-checks the identity declarations in the identity registry, forming an automated compliance decision chain. The technical architecture of ERC-3643 employs a dual-level permission control, inheriting ERC-20 functionalities while adding two critical compliance layers. The first layer focuses on the identity and qualification verification of the transaction recipient, utilizing ERC-734/735 standards to validate the existence of identity declarations and the certification status of trusted issuers; the second layer imposes global rule constraints on the token itself, such as setting daily transfer limits and maximum holder counts. This layered design ensures continuous verification of investor qualifications while providing issuers with flexible regulatory rule enforcement tools, meeting the multidimensional compliance needs of security tokens. The core components of its architecture are as follows: ● Identity Registry: As the core module connecting on-chain addresses with on-chain identities (ONCHAINID), it ensures that all token holders' identities are verifiable and compliant. Its core functions include registerIdentity(), updateIdentity(), updateCountry(), batchRegisterIdentity(), and isVerified(). The verification function isVerified() triggers the Claim Topics Registry (checks declaration types) and Trusted Issuers Registry (checks declaration issuers) when called, returning true if passed. ● Compliance Interface: A dynamic compliance rules engine used to execute global compliance strategies (such as holder limits and cross-border restrictions), associated with the token contract to intercept illegal transactions in real-time. Its core functions include bindToken(), unbindToken(), transferred(), created(), destroyed(), and canTransfer(), supporting modular replacement of compliance logic, allowing issuers to dynamically upgrade rules (e.g., adding AML strategies) without affecting the token contract. ● Trusted Issuers Registry: Used to manage trusted entities authorized to issue declarations. ● Token Contract: Extends compliance control functions based on ERC-20 compatibility, with main functions including conditional transfers, token freezing and unfreezing, contract lifecycle control, and metadata management. ● Claim Topics Registry: Defines the declaration types required for the token (e.g., KYC level, investor qualifications), serving as a 'checklist' for identity verification. 2. Identity Verification and Compliance Execution Mechanism The identity verification mechanism requires that each token holder must complete identity verification through a trusted declaration issuer to be whitelisted in the identity registry. When a transfer occurs, the token contract calls the isVerified() function through the compliance contract before the transfer to check in real-time whether the recipient address is in the identity registry and whether its associated identity contract contains the declarations required in the Claim Topics Registry, and these declarations must be signed by an authorized party in the Trusted Issuers Registry. This process ensures that only qualified investors who pass KYC/AML checks can hold or receive security tokens. Compliance execution is achieved through the canTransfer() function, which is called before each transfer to execute the following key checks: ● Investor qualification matching: Verifying whether the recipient meets the investor requirements for specific asset classes (e.g., qualified investor status) ● Jurisdictional restrictions: Ensuring that the jurisdictions of both parties allow such transactions ● Holdings control: Checking whether the transfer will cause a single investor to exceed the holding limit ● Global rule compliance: Verifying compliance with other global rules set by the issuer or regulatory bodies This design embeds compliance requirements directly into the token's contract, transforming regulatory rules into self-executing on-chain controls. These rules are dynamically upgradable, allowing for updates through the compliance contract without modifying the token contract itself, adapting to the continuously improving compliance framework. For example, the stablecoin regulatory regime implemented by the Hong Kong Monetary Authority (HKMA) starting in August 2025 requires ERC-3643 to meet the following regulatory requirements: i) For identity verification of stablecoin holders (Licensed Stablecoin Issuer Regulatory Guidelines) Section 6.5.3: Licensees should identify all operations related to each specified stablecoin they issue throughout the entire token cycle, which should cover deployment, configuration, minting, burning, upgrading, pausing, resuming, blacklisting, unblacklisting, freezing, unfreezing, whitelisting, and the use of any operational wallets, etc. (Anti-Money Laundering and Counter-Terrorist Financing Guidelines) Section 5.11: Unless the licensee can demonstrate to the Monetary Authority that such risk mitigation measures can effectively prevent and combat money laundering, terrorist financing activities, and other crimes, the identity of each stablecoin holder should be verified by one of the following parties: the licensee (even if the holder does not have a customer relationship with the licensee); a suitably regulated financial institution or virtual asset service provider; or a reliable third party. The above two guidelines require stablecoin licensees to verify the identity of stablecoin holders and manage permissions for all operations during the token cycle. ERC-3643 supports binding each stablecoin holder's wallet address with their on-chain identity declaration (e.g., KYC status, place of residence) through Compliance...

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