ERC-1404 vs ERC-3643: transfer-restricted token standards compared
Most tokenized securities cannot move freely like ordinary ERC-20 tokens. ERC-1404 and ERC-3643 are two Ethereum standards for tokens whose transfers are checked against rules before they happen.
ERC-1404: Simple Restricted Token Standard
ERC-1404 extends ERC-20 with two functions: detectTransferRestriction, which returns a code saying whether a transfer is allowed, and messageForTransferRestriction, which turns that code into a readable reason.
It deliberately leaves the rules themselves to each issuer. That makes it light and flexible, but every implementation decides on its own how investors are whitelisted.
ERC-3643: permissioned tokens with on-chain identity
ERC-3643, which grew out of the T-REX protocol, defines a fuller framework. Transfers are checked against an identity registry, where each holder is linked to an on-chain identity carrying claims from trusted issuers, and against modular compliance rules such as country or holder limits.
It also specifies agent roles that can freeze tokens, force transfers and recover tokens for lost wallets — features regulators often expect for securities.
Key differences
Scope: ERC-1404 standardises the question "may this transfer happen?", while ERC-3643 also standardises who answers it and how identity is stored.
Interoperability: ERC-3643 tokens share one identity and compliance model, so tools can read eligibility the same way across issuers. ERC-1404 tokens each need their own rule set to be understood.
Both remain ERC-20 compatible for balances and wallets, which is why both appear alongside plain ERC-20 tokens in RWA indexes.