What is ERC-3643?
ERC-3643 is a permissioned token standard for Ethereum-based chains that allows transfers only between wallets whose owners have passed on-chain identity and compliance checks, making it the leading standard for security and RWA tokens.
Also known as: T-REX standard · permissioned token standard · onchainID
In plain terms
ERC-3643 is a rulebook for tokens that only verified people can hold and trade. Every transfer checks, automatically, that both the sender and the receiver are approved investors.
It is how a token can be a security on-chain: the compliance checks that a transfer agent would do on paper happen inside the token's own code.
How it works
Each wallet is linked to an on-chain identity, typically through the OnchainID system, containing claims such as jurisdiction, investor category and accreditation status, issued by trusted verifiers.
The token contract consults a compliance module before every transfer: if the sender or receiver fails the rules — wrong jurisdiction, unverified identity, frozen account — the transfer is rejected.
The issuer can update rules, freeze tokens, force transfers and manage recovery, which mirrors the powers of a traditional transfer agent but executes on-chain.
Example
Hypothetical: a fund issues its interests as ERC-3643 tokens restricted to accredited investors in approved jurisdictions. A token holder tries to transfer to an unverified wallet and the transfer is rejected; the same transfer to a verified, eligible wallet completes instantly.
Why it matters for founders and investors
ERC-3643 is the practical bridge between securities law and blockchain: it lets issuers offer compliant, transferable instruments on-chain without giving up investor protection.
For investors, it means their holdings carry enforceable compliance — which is what allows the token to be treated as a legitimate security-grade instrument.
Common misconceptions
ERC-3643 does not make a token a security by itself. It provides the compliance mechanics; the legal classification comes from the offering and the structure behind the token.
Compliance is not fully automatic — the quality of identity claims depends on the verifiers issuing them, and the rules are only as good as their configuration.
Frequently asked questions
What is the difference between ERC-20 and ERC-3643?
ERC-20 is the open fungible-token standard with no transfer restrictions; ERC-3643 extends it with identity-based permissioning, so only verified wallets can hold and transfer the token. ERC-3643 is used when regulation requires it.
Can ERC-3643 tokens be listed on exchanges?
Only on venues that support identity-based tokens and can verify their users' identities to the issuer's rules. Most general exchanges cannot list them without integrating the compliance layer.