# Token standard

A token standard is a published smart contract interface that defines how a token behaves: transfers, balances, compliance hooks, and lifecycle functions. Standards make tokens interoperable with wallets, custodians, and market infrastructure, which is why banks require recognized standards rather than proprietary formats.

## The standards that matter for regulated issuance

For tokenized securities: CMTAT, ERC-3643, and ERC-1400 embed transfer restrictions and issuer controls. For payments and utility: ERC-20 and chain-native standards such as SPL on Solana and SAC with SEP-41 and SEP-57 Soroban on Stellar. Permissioned settings add Canton CIP 56 and CIP 112.

Taurus-CAPITAL supports these standards across 45+ blockchains, smart-contract agnostic, so issuers choose the standard per instrument and jurisdiction.

FAQ:

- Which token standard should a bank use for securities? One with compliance built into the contract: CMTAT for Swiss-law instruments, ERC-3643 or ERC-1400 where identity-bound transfer control is required. The platform should support all of them so the legal team, not the vendor, decides.

Related: https://www.taurushq.com/glossary/cmtat/ https://www.taurushq.com/glossary/erc-3643/ https://www.taurushq.com/glossary/erc-1400/ https://www.taurushq.com/capital/

Learn more: https://www.taurushq.com/glossary/token-standard/