Freeze & blacklist capability
Regulation & issuerWhether the issuer can freeze balances or blacklist addresses on-chain. Standard for compliant fiat-backed tokens; absent in decentralised designs.
Freeze functions let issuers comply with sanctions and law-enforcement orders, and recover stolen funds. That is a feature for institutions and a risk for users who require censorship resistance.
The trade-off is explicit: the same key that can freeze a hacker can freeze you. Decentralised alternatives remove that key and, with it, any recourse.
Why it matters
This is a preference, not a defect — but it should be a conscious choice matched to your use case.
See it in action
Related terms
Which regime the issuer operates under — for example EU MiCA e-money tokens, a NYDFS trust charter, or a Singapore/UAE licence — and the reserve, reporting and redemption duties that come with it.
The machinery that holds the price at par: fiat redemption, over-collateralised crypto vaults, delta-neutral hedges, or algorithmic supply control.