A coalition of Web3 companies has unveiled a pioneering Ethereum token standard aimed at enhancing compliance and minimizing fragmentation within the expanding sector of real-world assets (RWAs). The newly proposed standard, designated ERC-7943, offers a minimal and modular interface compatible with Ethereum layer-2s and Ethereum Virtual Machine (EVM) chains, while ensuring it remains independent of specific vendor infrastructure.
Dario Lo Buglio, co-founder of Brickken and the driving force behind the Ethereum Improvement Proposal (EIP)-7943, emphasized that this standard functions as a “universal layer” applicable to any token type. This innovative approach allows developers and institutions to bypass the cumbersome processes of utilizing wrappers and custom bridges when integrating tokenized assets into applications.
The initiative has garnered support from a group of notable Web3 and fintech firms, including Bit2Me, Brickken, Compellio, Dekalabs, DigiShares, Hacken, Forte Protocol, FullyTokenized, RealEstate.Exchange, Stobox, and Zoth. Lo Buglio highlighted that this collaborative effort addresses a current wave of institutional interest driven by the need for improved standards in the marketplace.
Recent data from the RWA tracker RWA.xyz reveals that the total value of tokenized RWAs on-chain has surged to $28.44 billion, marking an increase of nearly 6% over the last month. Additionally, the value of stablecoins and the number of their holders have grown by roughly 7% and 9%, respectively. This upward trend underscores the significant institutional adoption of RWAs, with various issuers vying for market share.
Lo Buglio articulated that the newly proposed standard emerges from a confluence of developer frustration and heightened institutional interest. He noted that financial institutions are seeking programmable controls aligned with their compliance frameworks, while developers are faced with the repetitive task of creating custom logic for each RWA token. “We needed a common foundation,” he stated.
As the proposal progresses, it has entered the review phase of the EIP process, during which Lo Buglio has received valuable feedback from compliance experts and other authors of token standards. He clarified that this feedback will be essential in refining the proposal before final adoption.
Prior attempts to standardize RWA tokenization on Ethereum included standards such as ERC-1400 and ERC-3643. The former integrated elements of both fungible and non-fungible tokens, equipped with compliance tools, while the latter specifically targeted regulated assets like securities, emphasizing identity and permission layers for compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Lo Buglio contrasted these earlier efforts with ERC-7943, noting that while ERC-1400 and ERC-3643 serve specific purposes, their frameworks are closely tied to individual identity and permissioning stacks. In contrast, ERC-7943 is designed as a flexible, implementation-agnostic interface. “EIP-7943 defines only what must exist — not how it’s built — so any project or protocol can integrate it into their stack without friction,” he explained. The primary aim of this new standard is to tackle industry fragmentation and establish a uniform set of functions for compliance across the board.
