New Standards for Managing Real-World Asset and Stablecoin Ledgers

Developers
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The token working group is currently exploring new standards designed to address the unique needs of managing real-world asset ledgers—such as those required to comply with the CMTAT standards—as well as stablecoin ledgers. These types of ledgers often require privileged management operations to ensure compliance, security, and operational integrity.

As part of this initiative, we are considering the following management operations that can be executed by privileged parties:

  • Pause and Unpause Ledger: Temporarily halt all transaction processing while maintaining read access to the ledger’s state. This operation is useful in situations where transactions need to be suspended due to maintenance, security concerns, or regulatory intervention.
  • Deactivate Ledger: Permanently halt all transaction processing on the ledger. Unlike a pause, deactivation is irreversible, ensuring that the ledger can no longer be used for transactions while its historical state remains accessible.
  • Freeze and Unfreeze Accounts: Restrict specific accounts from being used in transactions. This operation can be applied to enforce compliance measures or respond to suspicious activity.
  • Wipe Account: Remove all tokens from a specific account. This operation is designed to address scenarios where tokens must be revoked or nullified, such as in cases of fraud, regulatory action, or user-requested account closure.

These operations should provide a robust framework for ensuring the compliant and secure management of token ledgers. However, we recognize that additional functionalities may be valuable, and we welcome input from the community.

Are there other operations that you believe would be useful for managing real-world asset and stablecoin ledgers? Share your suggestions here to help us shape the next generation of ICP ledgers!

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There is something we are working on along with the financial regulator here, we wanted something that would allow zk of KYC, but allow the regulator to only view the real data. @jumanaa check this out

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Does this standard used for incoming stable coin issuer?

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The idea is to develop a standard that covers the functional and security related features of a stable coin ledger so that it can be used by any stable coin issuer

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Suggested Improvements for ICP Ledger Operations & User Experience

The ICP ledger, with its CMTAT standards, already has a strong foundation in compliance, security, and operational integrity. To further enhance its functionality and usability, I suggest adding two key features: Transaction Reversal for management operations and User-Controlled Account Recovery for end-users. These improvements would make the ledger more adaptable, secure, and user-friendly.

1. Transaction Reversal for Management Operations

The Challenge

Currently, admins can pause, freeze, or wipe accounts, but there’s no way to reverse a specific transaction. If an error, fraud, or dispute occurs, correcting it can be difficult and disruptive.

A Possible Solution

Introducing a Transaction Reversal feature could allow authorized parties to undo transactions under specific conditions. This could:

  • Enhance Accountability: Require multi-signature approvals and audit logs to prevent abuse.

  • Preserve Integrity: Ensure reversals are transparent and don’t alter the historical ledger state.

  • Improve Flexibility: Provide a way to correct mistakes without disrupting entire accounts.

Potential Benefits

  • For Project Owners: Reduces operational risks and dispute-related costs.

  • For Users: Builds trust by ensuring errors can be corrected fairly.

  • For Regulators: Reinforces compliance and responsible financial management.

2. User-Controlled Account Recovery

The Challenge

Users risk losing access to their accounts due to forgotten passwords, lost keys, or compromised credentials. Traditional recovery methods can be slow, centralized, or insecure, while decentralized systems often lack recovery options altogether.

A Possible Solution

A User-Controlled Account Recovery system could provide users with secure, self-managed recovery options such as:

  • Social Recovery: Allow users to designate trusted contacts for account recovery.

  • Multi-Factor Authentication (MFA): Offer recovery via email, SMS, or hardware authentication.

  • Time-Delayed Recovery: Implement waiting periods to prevent unauthorized takeovers.

Potential Benefits

  • For Users: Reduces the risk of losing access permanently.

  • For Project Owners: Improves user experience and retention.

  • For the Ecosystem: Lowers the barrier to entry for non-technical users.

Considerations for Implementation

  • Transaction Reversal: Establish clear governance rules, audit trails, and security measures.

  • User Recovery: Ensure decentralization, strong cryptographic protections, and user education.

Final Thoughts

Adding Transaction Reversal and User-Controlled Recovery could significantly improve the ICP ledger’s security, flexibility, and user experience. These features would make the system more practical for real-world use while maintaining compliance and trust. It may be worth considering these enhancements as part of the next phase of development.