A coalition of Web3 companies has announced a new Ethereum token standard, ERC-7943. This standard aims to simplify compliance and reduce fragmentation in the real world asset sector.
What is ERC-7943?
The ERC-7943 standard creates a minimal, modular interface that can function across Ethereum layer-2s and EVM chains while remaining independent of vendor-specific infrastructure. This means it can be used in any token setup.
Dario Lo Buglio, co-founder of Brickken and author of the Ethereum Improvement Proposal (EIP)-7943, stated that the new standard acts as a 'universal layer' that covers all token types, allowing developers and institutions to avoid using custom bridges.
Response to Institutional Needs
Lo Buglio notes that EIP-7943 was developed in response to a growing institutional interest and developer frustration. Data from the RWA tracker shows that the total value of tokenized RWAs on-chain has reached $28.44 billion, increasing nearly 6% in the past 30 days.
The significant activity from institutional investors indicates the need for a new token standard that meets the needs of both developers and financial institutions.
Advantages of the New Standard
ERC-7943 sets itself apart from previous attempts to standardize RWA tokenization, such as ERC-1400 and ERC-3643, by providing a minimal, implementation-agnostic interface.
According to Lo Buglio, the primary goal of EIP-7943 is to solve the fragmentation issue in the industry by providing a unified set of standardized compliance functions.
The new ERC-7943 standard provides essential tools to simplify the tokenization of real-world assets, highlighting the growing institutional interest and demand for such solutions.
