Overview
HTS provides ledger-enforced technical controls (KYC flags, freezes, wipes, pauses). ERC-3643 (T-REX style) adds contract-level identity registry + modular compliance checks often deployed via Smart Contract Service — Hedera docs bridge these concepts under ERC-3643 Real World Assets. Use HTS when native performance/fee profile wins; use ATS (see hedera-asset-tokenization-studio) when productized lifecycle features win.
When to use this skill
- Translating legal policies into concrete key custody + transaction flows.
- Comparing pure HTS vs ERC-3643 on HSCS vs Asset Tokenization Studio packaging.
Prerequisites
- Legal/compliance alignment on freeze/wipe authorities (human processes).
- Testnet rehearsal before touching investor funds.
Workflow
- Threat model roles — compliance, treasury, legal, tech ops — map to
kycKey,freezeKey,wipeKey,pauseKey,adminKey,supplyKey. - KYC pipeline — off-chain verification → on-chain
TokenGrantKycTransaction. - Restrict trading — combine freeze + documentation of investor communications.
- Emergency pause —
TokenPauseTransactionhalts movement network-wide for that token. - Court-ordered seizure simulation (testnet) — freeze target then
TokenWipeTransactionper jurisdiction playbook never without counsel. - Admin rotation — schedule
TokenUpdateTransaction/ multisig ceremonies referencinghedera-account-management. - ERC-3643 mapping — see references/erc3643-mapping.md.
Scripts (scripts/kyc-flow.js, etc.) demonstrate SDK mechanics — policies live off-chain.
Examples
Example 1
“Investors must be accredited before receiving tokens.”
Off-chain accreditation → grant KYC bit → monitor Mirror for attempted transfers pre-compliance.
Example 2
“Exchange needs to halt a sanctioned wallet.”
Freeze account at token level; escalate legally before wipe.
Example 3
“How close is HTS to ERC-3643?”
HTS covers mandatory controls primitives; ERC-3643 adds on-chain modular compliance & identity registry patterns — often implemented via Solidity while still leveraging HTS for supply.
Troubleshooting
| Scenario | Tip |
|---|---|
| Cannot wipe | Account must be frozen per rules |
| Investors panic-sell during pause | Communications playbook & regulatory coordination |
References
- Local: references/erc3643-mapping.md, references/regulatory-workflows.md, references/ats-pointer.md
- Product: Asset Tokenization Studio