Announcing Predicate Asset Compliance: Automated Token Contract Controls for Stablecoins and RWAs

Predicate Team

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April 23, 2026

Blockchain technology is entering a new phase as financial institutions and fintechs bring more assets onchain, such as stablecoins, tokenized securities, and other real world assets (RWAs). But for tokenized assets to scale in regulated markets, issuers need onchain compliance controls that meet the same business, legal, and regulatory standards they face offchain.

Predicate is solving that challenge with the newest addition to our programmable policy platform: Predicate Asset Compliance.

Predicate Asset Compliance provides maximum control over token access with minimum overhead for compliance teams. Issuers define policies for who can and cannot access their assets, based on their unique requirements. Predicate integrates those policies directly with the token smart contract in a secure manner, and automatically enforces them in real time, restricting high-risk addresses and malicious actors while letting compliant users transact frictionlessly.

By making onchain compliance automated, programmable, and robust, Predicate reduces overhead and enables any organization to distribute assets across blockchain networks and keep up with evolving regulations, without juggling multiple tools and manual workflows.

Why we built it: Addressing the tokenized asset compliance gap

Tokenization and issuance are moving finance onchain. Stablecoins are becoming foundational settlement rails. Tokenized funds and securities are unlocking new efficiencies and distribution opportunities. Private credit and yield tokens are expanding access to institutional returns. And emerging regulatory clarity is accelerating adoption. In essence, blockchains are becoming the global financial settlement system.

But merely tokenizing assets isn’t enough.

Scaling tokenized assets requires programmable, enforceable compliance controls that match the regulatory and risk standards applied to equivalent assets in traditional finance. There’s still work to be done on this front. According to research from TRM, for example, 2025 saw over $141 billion in stablecoin payments linked to illicit activity – the highest level observed in five years – most of which was related to sanctioned entities. In a similar vein, the U.S. Treasury proposed AML obligations for stablecoin issuers to counter these trends, including the ability to freeze, seize, and block funds from high-risk addresses. Other RWAs like tokenized securities will need similar capabilities, plus controls to enforce requirements like KYC & KYB and investor accreditation without breaking onchain composability and user experience.

Today, most stablecoin and RWA issuers handle compliance manually, coordinating across compliance, legal, and engineering teams to evaluate address risk, update freeze lists, and maintain documentation. That status quo isn’t effective enough for assets that move in real time, and creates too much operational burden to reach global scale.

Predicate Asset Compliance solves these problems with automated, easily-tuned compliance controls integrated at the token contract level.

How Predicate Asset Compliance works

Predicate Asset Compliance enables asset issuers and other organizations to automate three key restrictions based on address risk characteristics:

Address Freeze: Prevents an address that currently holds the asset from sending or receiving funds per lawful orders, e.g. sanctions administered by the United States Office of Foreign Asset Controls (OFAC) and law enforcement requests
Address Pause: Temporarily prevents an address that currently holds the asset from sending or receiving funds, until the address has been investigated by the issuer or unpaused automatically after a defined review period
Transfer Restriction: Prevents an address that currently does not hold the asset from acquiring it, such as an address involved in a major exploit

Issuers can incorporate a wide range of automated and manual risk signals into their policies, utilizing the data sources they need across trusted blockchain analytics providers, internal forensics, and more. For example, issuers can easily integrate the OFAC sanctions list to automatically freeze and restrict known sanctioned addresses across all blockchain networks. They can integrate providers like TRM to create a system of tiered restrictions based on address risk severity, or real-time exploit data feeds to instantly restrict hacker addresses and stop the flow of stolen funds. And issuers can also manually restrict addresses the organization has internally identified as high-risk or that have been flagged by law enforcement.

Crucially, Predicate does not just automate enforcement. It also eliminates the operational overhead that slows compliance teams down:

No engineering bottleneck. Today, when compliance teams identify a high-risk address, they need engineering to manually freeze or restrict it. Predicate eliminates that dependency. Addresses flagged by issuer policies are restricted automatically, and compliance teams can manually freeze additional addresses as needed in a few clicks. Compliance teams have the expertise and mandate to manage address risk, and Predicate empowers them to do so quickly and decisively.
End-to-end data management. Predicate identifies and integrates the best data sources for each issuer's unique policy. The platform continuously ingests and synchronizes data updates across all sources so that new address risk flags are acted on within minutes, compared to hours or even days for issuers updating freeze lists manually. And if one provider goes down, Predicate manages fallbacks seamlessly so enforcement continues uninterrupted.
Built-in reporting. Issuers need to maintain documentation on high-risk addresses and restrictions taken against them for internal records and responses to law enforcement and regulators. Predicate maintains this documentation automatically, drastically cutting reporting work for compliance teams.

Together, these capabilities enable issuers to run a comprehensive tokenized asset compliance program from the Predicate platform, without having to manage multiple vendors, coordinate across internal teams, or extract data manually.

Our goal is simple: Predicate should be the compliance platform for onchain finance. Read our docs for more details on how Predicate Asset Compliance streamlines compliance for issuers.

Asset Compliance: One part of the Predicate platform

Predicate Asset Compliance becomes even more powerful when used alongside the rest of the Predicate platform – especially for complex onchain products or organizations with extensive offerings.

For example:

Vault products can use Predicate Application Compliance to screen address eligibility for vault deposits, and Asset Compliance to ensure vault receipt tokens are not acquired by sanctioned entities.
Privacy blockchains can use Predicate Application Compliance to screen addresses before they bridge in. If ongoing monitoring later flags the depositing address as high-risk, Asset Compliance freezes their funds on the privacy chain.
Tokenization platforms selling real world assets can use Predicate Identity to meet KYC & KYB verification requirements on primary sales, while using Asset Compliance to automatically enforce those approvals on secondary transfers of the token.

Together, the Predicate platform automates the most operationally complex parts of onchain compliance so that organizations can focus on product development and market expansion.

In production now

Blockchains offer financial institutions global distribution, liquidity, and composability for the assets they issue. Predicate Asset Compliance provides a critical missing piece: robust and automated onchain compliance controls.

Predicate is thrilled to launch Asset Compliance alongside a set of premier partners and customers with asset policies in production now or launching soon:

M0: Predicate Asset Compliance is the official compliance partner for M0-powered stablecoins. M0 is the shared infrastructure where businesses launch stablecoins and financial institutions power them.
Centrifuge: Predicate is the official compliance partner for tokenized assets launched via Centrifuge’s platform. Centrifuge issuers can set token-level policies with Predicate Asset Compliance, as well as vault depositor screening using Predicate Application Compliance.
Stellar: Predicate Asset Compliance is going live on Stellar to support institutional and fintech partners for payments and other use cases.
Startale: Predicate Asset Compliance powers real-time sanctions screening for Startale USD, the official stablecoin of the Soneium ecosystem.
Consensys: Consensys’ MetaMask USD stablecoin uses Predicate Asset Compliance to prevent malicious users involved in major exploits from acquiring the asset.