ERC-3643 (also known as T-REX — Token for Regulated EXchanges) is an Ethereum token standard purpose-built for regulated securities. Unlike general-purpose token standards (ERC-20), ERC-3643 embeds compliance rules directly into the token's smart contract: identity verification through on-chain identity registries, transfer restrictions based on investor eligibility and jurisdictional rules, and agent-based permissioning that allows authorized parties (issuers, regulators, transfer agents) to manage token lifecycle events.
Why ERC-3643 Matters for Fund Managers
Fund interests are securities. Any token representing them must enforce the same transfer restrictions that apply to traditional securities — accredited investor requirements, jurisdictional limitations, holding period rules, and maximum investor counts. ERC-3643 automates these checks at the smart contract level, meaning a non-compliant transfer is rejected by the protocol itself rather than relying on manual oversight or post-trade reconciliation.
ERC-3643 Architecture
The standard uses three core components: an Identity Registry that links wallet addresses to verified investor identities (through KYC/AML providers), Compliance Modules that define and enforce transfer rules (investor caps, country restrictions, lock-up periods), and Token Agents that have permissioned access to manage minting, burning, freezing, and forced transfers for regulatory compliance. This architecture has been adopted by institutional platforms including PoliBit for tokenized fund infrastructure.