Brickken co-founder proposes EIP-7493 for compliant RWA tokenization standards

Brickken announced a new Ethereum Improvement Proposal (EIP) by its co-founder Dario Lo Buglio, aimed at creating a new token standard designed for real-world asset (RWA) tokenization.

“We recognized that the one-size-fits-all approach to token standards for RWA stifles innovation and poses unnecessary complexities to achieve modular and compatible RWA that fits into the continuously evolving DeFi space,” said Lo Buglio in a statement. 

Lo Buglio's EIP-7493 proposes Universal RWA Interface (uRWA), a token standard designed to establish a modular foundation for RWA tokens with a focus on compliance.

According to the Brickken co-founder, most token standards are either too specific or too broad in their design and use cases, often having to sacrifice security, efficiency, or DeFi compatibility.

Lo Buglio claimed uRWA can establish a flexible foundation, with a token standard compatible with ERC-20 ERC-721 and ERC-1155.

Its key features include nuanced transfer controls, which lets protocols know whether a transfer can happen between certain parties, and actor management, which helps define which specific actor is allowed to interact within the token contract.

EIP-7493 also proposes enforcement capabilities within uRWA, which can help authorities enforce transfers between wallets, in case of confiscation, revocation or user recovery.

"On top of that, expanding with a modular approach, enables the entire community to build custom extensions creating endless possibilities for all classes of RWA," Brickken said.

Following the proposal, EIP-7493 is expected to undergo community review and discussion, with further updates before potentially being implemented.