Partitions (tranches)
A holder's units can be split into labelled groups, for example units under a lock-up and units free to transfer, or different classes. Each group can follow its own rules.
Token standard
ERC-1400: an early attempt at a security token standard.
ERC-1400 was one of the first serious efforts to write securities rules into tokens. It introduced ideas that still matter, such as tranches and attached documents. It was never finalised, and adoption stayed limited compared with ERC-3643.
- Introduced
- 2018
- Type
- Security token family
- Status
- Never finalised
What it is
ERC-1400 was proposed around 2018 by Polymath and other contributors. It is not a single format but a family of related proposals, each covering one part of how a security behaves: holdings split into tranches, a check before each transfer, links to legal documents, and powers for an authorised controller.
It sits in the Ethereum Improvement Proposal process, the public process through which Ethereum standards are discussed and agreed. The family never reached final status. Projects that use it tend to implement their own version of it.
How it works, in plain terms
The four main ideas in the family.
Transfer checks
Before a transfer, the token can ask whether it is allowed and give a reason code if not. What counts as allowed is left to each issuer to define.
Document management
The token can point to legal documents such as a prospectus, and record when they change.
Controller powers
An authorised controller can force a transfer, for example to carry out a court order.
Where ERC-1400 is the right tool
For a project already built on ERC-1400, with its code audited and its legal documents written around it, there may be no reason to move. Its tranche model is also a clear way to think about classes of holdings, and many later designs learned from it.
It deserves credit. It moved the conversation from open tokens to securities that know their own rules.
Why it falls short for regulated ownership of real assets today
The main issue is status. Because the family was never finalised, there is no single agreed version. Each implementation makes its own choices, so tools, platforms and venue partners cannot assume they understand an ERC-1400 token without reviewing it first.
Identity is also left open. ERC-1400 can check a transfer, but it does not define how an investor's verified identity is stored or reused. Each issuer decides that outside the standard. Recovering a holding for an investor who loses access is not standardised either.
ERC-3643 addressed these points directly, with a built-in identity model, modular rules and defined issuer controls, and it became a final Ethereum standard in 2023.
ERC-1400 at a glance
- Introduced
- Proposed around 2018 (Polymath and others)
- Type
- Security token family: tranches, documents, transfer checks, controller powers
- Built-in transfer rules
- A check before each transfer; the rules themselves are defined per issuer
- Identity
- Not defined by the standard
- Official status
- Proposal family, never finalised
Questions we get
Is ERC-1400 a bad choice?
No. It was a thoughtful early design. For a new offering, we prefer a standard that is final, widely supported and defines identity, which is why we use ERC-3643.
Can an ERC-1400 security be moved to ERC-3643?
A migration is possible in principle, but it involves your legal documents, your investor register and every holder. It is scoped case by case with counsel.
Does ERC-3643 support tranches?
Different classes are usually issued as separate ERC-3643 securities, each with its own rules. Locking units is handled by the issuer's freeze controls or by compliance rules.
General information about public technical proposals. Not legal, tax or investment advice.
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