ERC-7943 author says institutions can’t play DeFi’s ‘pirate game’

The Ethereum Improvement Proposal ERC-7943, also known as uRWA, has reached its final stage, marking a significant step in standardizing how regulated financial assets operate onchain. As institutional interest in tokenized real-world assets grows, existing DeFi infrastructure has proven insufficient due to its lack of built-in identity frameworks and compliance controls. Dario Lo Buglio of Brickken emphasizes that ERC-7943 provides a flexible, less opinionated framework designed to improve interoperability across diverse compliance systems, custodians, and exchanges. This development addresses the critical challenge of moving regulated assets across fragmented blockchain environments without requiring institutions to build isolated infrastructure. With the RWA market expanding from $6.4 billion in early 2025 to $34 billion, the need for standardized data regarding identity, permissions, and transfer rules has become paramount. While standards like ERC-3643 already exist for securities, ERC-7943 aims to offer broader utility for various asset classes and interconnected blockchain environments. Ultimately, this evolution is essential for supporting future machine-driven financial systems where AI agents will require readable, standardized onchain assets to move capital autonomously.