In the world of security tokens, two token standards are making waves: DyCIST (ERC‑7518) and ERC‑3643 (T‑REX). Each has its own unique features and benefits, and understanding how they stack up against each other is key for anyone interested in this space.
Yooro analyzed the official EIPs, project documentation, and real-world pilot data to prepare this comprehensive comparison for you.
Before we dive in, remember that “ERC” stands for Ethereum Request for Comments—community‑driven proposals that spell out how smart contracts should behave so that tokens remain interoperable across Ethereum and other Ethereum Virtual Machine (EVM)‑compatible chains; these standards don’t natively run on non‑EVM blockchains.1
In this article, we’ll look at what makes each of these token standards tick, their applications, and where they might be headed in the future. Let’s get into it!
ERC-7518—better known as DyCIST, short for Dynamic Compliant Interoperable Security Token —sprang from Zoniqx Inc.’s research lab in late 20232 and hit Ethereum Improvement Proposal status in early 20243. Engineers Abhinav, Prithvish Baidya, Rajat Kumar, and Prasanth Kalangi built DyCIST atop ERC-11554 so you can manage fungible and non-fungible slices in one shot.
Their aim: make it painless to tokenize real-world assets that need ongoing compliance, revenue sharing, and cross-chain mobility.
In practice, ERC-7518 powers permissioned yet portable tokens for everything from real-time royalty shards to dynamic carbon credits.
1. Real‑World Asset Tokenization
DyCIST extends ERC‑1155 (Ethereum’s multi-token standard that lets one contract mint and manage both fungible and non-fungible tokens efficiently) with partitioned tokens and on‑chain compliance modules, letting an office tower, a whisky cask, or an invoice be broken into semi‑fungible “shares.” Each partition embeds jurisdiction, lock‑ups, and payout logic, so rental income or coupon payments stream automatically while secondary trades remain rule‑compliant. Cross‑chain bridges move the asset to low‑fee EVM networks without losing its audit trail, keeping liquidity high and paperwork low.
2. Cross‑Chain Royalty Payouts
Thanks to DyCIST’s modular payout and bridging layers, creators can mint a single “royalty shard” that travels with their content wherever fans are—Ethereum for primary sales, Polygon for gaming perks, Arbitrum for DeFi staking, all while a unified royalty schedule redistributes streaming or resale revenue back to the artist’s wallet in real time. The contract’s compliance gates ensure revenue only goes to verified rights‑holders, eliminating middlemen and missed payments.
3. Dynamic Carbon‑Credit Tracking
Environmental projects use DyCIST to issue carbon offsets whose metadata—baseline, vintage, retirement status—updates automatically whenever IoT sensors post emissions data on‑chain. A forest‑management DAO, for instance, can retire credits partition‑by‑partition as trees are verified standing, while regulators and buyers see an immutable audit trail. Cross‑chain operability lets those credits plug into DeFi carbon markets without duplicated liquidity pools.
DyCIST’s partitioned design, built‑in compliance, and seamless EVM bridging make it a versatile engine for asset tokenization, real‑time royalty distribution, and transparent sustainability reporting—all from one extensible standard.
When we talk about token standard comparison, DyCIST brings a few advantages to the table. Compared to older standards, it often offers better performance and more built-in features. It's not a perfect solution for everything, but it's definitely worth considering for certain projects. The token standard comparison is important to understand the best use cases for each standard.
DyCIST, being a newer standard, is still finding its footing, but there are some interesting projects popping up. One area where it's gaining traction is in supply chain management. Imagine tracking goods from origin to consumer with complete transparency and security. That's the promise of DyCIST. We're seeing pilot programs in the luxury goods sector, where proving authenticity is a big deal. Think high-end watches or designer handbags. If you can embed a DyCIST token into the product itself, you can verify its origin and track its journey, reducing counterfeiting. It's also being explored for use in carbon credit markets, providing a transparent and auditable way to track and trade carbon offsets. It's still early days, but the potential is there.
Music platforms mint DyCIST partitions that represent micro‑ownership of a track’s future revenue. As plays are logged, the payout module streams fractional royalties to every shard holder—no collection societies, no quarterly delays. Because the tokens bridge to low‑fee EVM chains, fans can trade royalties in real time while the audit trail stays intact.
Reforestation projects issue DyCIST credits whose metadata updates whenever IoT sensors verify tree growth. Carbon value and retirement status adjust on‑chain, giving buyers a live view of impact. Those same credits can be staked in DeFi pools to finance new planting, creating a self‑reinforcing green economy.
DyCIST is still pretty new, so there's a lot of room to grow. Right now, the focus seems to be on making it easier for developers to use. Expect to see more tools and better documentation coming out soon. There's also talk about adding more features to handle complex ownership scenarios. Think about things like fractional ownership or shared control of assets. That's where DyCIST could really shine. The team is also looking at ways to improve the token's efficiency, making it cheaper to use on the blockchain. It's all about making it more accessible and practical for everyday use.
ERC-3643—better known as T-REX, short for Token for Regulated Exchanges—was born at Tokeny Solutions in 2018 and ratified as EIP- 3643 (Ethereum Improvement Proposal 3643) in September 20217. Engineered by Joachim Lebrun, Tony Malghem, Kevin Thizy, Luc Falempin, and Adam Boudjemaa, T-REX builds on ERC-20, the ubiquitous token interface that defines transfer, approval, and metadata functions, to deliver permissioned tokens with on-chain identity and rule-based controls. Their aim: simplify issuance and management of regulated digital assets by baking KYC/AML checks and transfer restrictions directly into the token contract.
In short, ERC-3643 equips token issuers with a turnkey framework for regulated asset tokenization, where identity, governance, and legal constraints are enforced automatically at the protocol layer.
T-REX’s identity-aware transfer engine, modular compliance framework, and ERC-20 interoperability make it an essential standard for any regulated token use case, from securities to syndicated loans.
Compared to vanilla ERC-20 tokens—and even cross-chain-focused protocols—T-REX stands out for its:
Since its ratification, T-REX has seen adoption among securitization platforms, digital asset funds, and tokenized bond issuers. Partnerships with Merkle Science and Chainalysis have enhanced compliance tooling, while pilot programs at major financial institutions leverage ONCHAINID for investor accreditation and automated regulatory reporting.
No token standard can survive alone. Partnerships are key. DyCIST and T-REX both need to work with other projects, companies, and organizations to grow. This could mean integrating with existing platforms, collaborating on research, or just spreading the word. For example, a partnership with a major exchange could bring more liquidity and visibility to the tokens. Or, working with a research institution could help improve the security and efficiency of the standard.
Here's a simple table showing potential partnership areas:
The tokenization market is heating up, and both DyCIST and T-REX are well-positioned to benefit. Real-world asset (RWA) tokenization is becoming a big thing -Real-world asset tokenization could top $5 trillion by 20309-, and that's where these standards can really make a difference. We're likely to see more companies using these tokens to represent things like real estate, commodities, and even intellectual property. The success of DyCIST and T-REX will depend on how well they can adapt to changing market needs and regulatory landscapes. It's a competitive space, but both have the potential to become major players. It's going to be interesting to watch how things unfold over the next few years. Creative sectors (music, art, sustainability) lean toward DyCIST’s flexibility, while traditional finance (securities, bonds, private funds) gravitates to T-REX’s ironclad compliance.
Navigating the regulatory landscape for tokenized assets is, well, complicated. Different jurisdictions have different rules, and sometimes, those rules aren't even clear when it comes to new tech like DyCIST and T-REX. One big hurdle is figuring out if these tokens are considered securities. If they are, then a whole bunch of securities laws kick in, like registration requirements and restrictions on who can buy and sell them. It's a legal maze, and staying compliant requires constant monitoring and probably a good lawyer.
Regulations can either help or hurt the adoption of DyCIST and T-REX. Clear and supportive regulations can give businesses the confidence to use these tokens, knowing they're operating within the rules. But strict or unclear regulations can scare people away, making them stick to more traditional methods. The key is finding a balance that protects investors without stifling innovation. For example, if regulations make it too expensive or difficult to issue DyCIST tokens, companies might just stick with regular ERC-20 tokens, even if DyCIST's advantages are clear.
Predicting the future of regulations is tough, but here are a few things to keep an eye on:
“It's likely that regulators will take a closer look at how these tokens are used and what risks they pose to investors. They'll probably focus on things like preventing fraud, protecting consumer data, and ensuring market stability. The future regulatory landscape will likely shape the long-term success of both DyCIST and T-REX.”
Ultimately, the regulatory environment will play a big role in determining whether DyCIST and T-REX become widely adopted or remain niche technologies.
Whether you’re building a multi-chain loyalty program or a tokenized bond offering, DyCIST and T-REX both bring game-changing capabilities. It boils down to:
Whichever path you choose, you’re standing on the shoulders of giants. Let’s see where these standards take us next!
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