Most people in the blockchain space are familiar with the core token standards: ERC 20, ERC 721, and ERC 1155. Each of these opened the door to new ecosystems like DeFi, NFTs, and gaming. But what happens when we want to bring more complex, real-world financial instruments like bonds on-chain?

That is where ERC 3475 comes in.

This standard is not just another version of what already exists. It is specifically designed to handle structured financial products, with built-in logic for maturity dates, interest rates, redemption terms, and partial repayments.

In this article, we’ll walk through the following:

• Why existing token standards fall short for structured finance
  
• What ERC 3475 introduces that is different
  
• How it works in plain English
  
• Who should consider using it
  
• Why it might be the foundation for more serious financial applications on-chain
  
  

If you are building in DeFi, tokenising real-world assets, or thinking about how DAOs can raise capital more sustainably, this one is for you.

Let’s break it down.

Understanding Token Standards Today

Ethereum token standards have been incredibly powerful. Each one unlocked a new use case and helped shape the ecosystem.

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ERC 20: The Backbone of DeFi

This is the standard behind almost every fungible token, from USDC to AAVE to UNI.
You can send, receive, and trade these tokens just like digital cash.

✅ Perfect for currencies and governance
❌ But it tells you nothing about the purpose of the token
There is no expiry, no interest, no logic. It is just a number in a wallet.

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ERC 721: The Birth of NFTs

This standard powers unique, non-fungible tokens like digital art, collectibles, or real estate.

✅ Great for one-of-a-kind digital assets
❌ Not built for finance
If you want to issue 1,000 identical bonds, managing them as 1,000 separate NFTs is inefficient and inflexible.

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ERC 1155: The Multi-Asset Gamer’s Friend

Used heavily in gaming, this standard allows you to bundle fungible and non-fungible assets in one contract.

✅ Efficient for batch minting and transfers
❌ Still lacks the financial logic needed for structured instruments

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ERC 3525: A Step Closer to Finance

ERC 3525 introduced value slots, combining token balances with metadata.

✅ Useful for things like vesting schedules or partial ownership
❌ Still too generic for something like a bond
There is no built-in maturity logic, no redemption tracking, and no clean way to handle structured debt.

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What Makes ERC 3475 Different

ERC 3475 is designed specifically for on-chain bonds, which are financial agreements with fixed terms and repayment logic.

Instead of issuing a token that represents simple value, you are issuing a contractual agreement. It knows how much is owed, when it matures, what the interest is, and whether any repayment has been made.

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Key Features

• Classes: Represent different types of bonds (for example, 6-month fixed rate)
  
• Nonces: Track individual bond issuances (for example, July batch)
  
• Redemption logic: Set rules for when and how a bond can be redeemed
  
• Partial payouts: Enable coupon-style interest payments or amortised repayment
  
• On-chain tracking: All of this is verifiable, composable, and programmable
  
  

ERC 3475 makes it possible to issue structured financial instruments using native Ethereum standards. There is no need for separate spreadsheets or custom back-end logic.

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Let’s Make It Make Sense

Imagine you run a lemonade business. You want to expand, but you need funds.

So you say:

“Pay me $100 today, and I will give you $110 in 6 months.”

Now imagine writing that promise, with repayment terms, dates, and interest, directly into a smart contract.

That is what ERC 3475 lets you do.

You can:

• Create a class for your 6-month bond.
• Issue a nonce for July’s batch.
• Let people redeem the bond after 6 months.
• Include interest or early redemption conditions.
  
  

It is not just a token. It is a structured financial agreement, enforced by code.

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Who Should Actually Use ERC 3475 and Why

This standard is not for everything, but if you are dealing with capital, debt, or recurring cash flow, it is worth serious consideration.

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DAOs and Protocol Treasuries

Raise funds without selling your governance token. Issue debt, repay over time, and preserve long-term alignment.

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DeFi Builders

Build fixed-income products, bond markets, or tranche-based lending. ERC 3475 gives you the foundation to do it cleanly and on-chain.

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RWA Platforms

Tokenise real-world bonds, credit, or invoices using a format that mirrors traditional finance. You get clarity and composability.

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Enterprises and Regulated Platforms

Combine ERC 3475 with KYC, allowlists, and vesting logic. It enables compliant, transparent financial agreements on-chain.

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Quick Comparison Table

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Final Thought

Ethereum has evolved from programmable money to programmable ownership. ERC 3475 takes it further by introducing programmable finance with clear, enforceable agreements.

DAOs, DeFi protocols, and real-world asset platforms now have a native way to handle structured debt using open, composable infrastructure.

At Linum, we are keeping a close eye on what ERC 3475 unlocks. 

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