Metadata Standards on Cardano

Relevant to RWAs

When tokenizing real-world assets on Cardano, metadata plays a critical role. Metadata gives meaning to a token: what it represents, who backs it, and what information is attached (e.g. audits, legal identifiers, or valuation data).

There are several CIPs used for token metadata:

CIP-25 (NFT Metadata Standard)

• Metadata is stored in the minting transaction under label 721.

• Widely supported by wallets, explorers, and marketplaces.

• Updating metadata requires minting again (minting additional supply or using a burn + remint process).

• Works well for simple NFTs or RWAs that do not require frequent metadata changes.

Example CIP-25 Metadata (JSON):

{
  "721": {
    "policy_id_here": {
      "WheatToken001": {
        "name": "Tokenized Wheat Certificate",
        "description": "Represents 1 ton of wheat stored at Warehouse #12",
        "image": "ipfs://QmExampleHash",
        "version": "1.0"
      }
    }
  }
}

---

CIP-68 (Reference NFT with On-Chain Metadata)

• Separates user tokens from a reference NFT.

• Metadata is stored in the datum of the reference NFT, and user tokens point to it.

• Metadata can be updated by modifying the reference NFT without affecting user-held tokens.

• More complex to implement, but ideal for RWAs that require dynamic data (e.g. audits, price updates, legal status).

Example CIP-68 Metadata (simplified datum):

{
  "version": "1.0",
  "name": "Tokenized Wheat Certificate",
  "description": "Represents 1 ton of wheat stored at Warehouse #12",
  "custodian": "Agricola Magdalena SRL",
  "audit_date": "2025-09-01",
  "proof_of_reserve": "ipfs://QmAuditReportHash"
}

---

CIP-86 (Metadata Updates via Oracles) – Not available yet

• Allows metadata to be updated without minting or burning tokens.

• Uses a metadata oracle assigned to the policy to submit changes.

• Backward compatible with CIP-25.

• Still early-stage, but promising for scenarios where frequent off-chain data must be reflected on-chain.

---

Comparison: Metadata Standards on Cardano

Feature	CIP-25	CIP-68	CIP-86 (in development)
Type	Metadata in minting transaction (label 721)	Metadata stored in reference NFT datum	Metadata managed via assigned oracle
Update method	Burn + remint	Update reference NFT, user tokens stay	Oracle updates metadata directly
Complexity	Low	Medium–High	Medium
Wallet / Explorer support	Very high	Growing	Not widely supported yet
Best for	Static metadata, simple RWAs	Dynamic RWAs with updates	RWAs needing frequent off-chain data
Example use case	Tokenized certificates	Commodities with audits	Financial assets with live feeds