Token Freeze and Recovery

Freezing blocks a wallet's token transferability, fully or partially. In ERC-3643 you can freeze a specific amount (freezePartialTokens) for vesting, lock-ups or precautionary holds, mark an entire wallet as frozen, or pause the whole token in an emergency. Recovery reassigns an investor's balance to a new wallet controlled by the same holder, linking it to their same on-chain identity (ONCHAINID) and moving the balance, including the frozen portion, through a forced transfer that invalidates the old wallet.

It is exactly what separates a security token from a bearer asset. The issuer keeps the regulatory control the rules demand: it can address AML and sanctions requirements, respond to litigation and, above all, assure investors that losing a key does not mean losing the asset. For an institution operating in regulated capital markets, that assurance is a practical requirement, not an extra.

These are an operational subset of forced transfer and a direct expression of compliance-by-design. Tokeny's T-REX deployments and platforms such as Securitize use them to recover tokens for investors who lose access and to enforce lock-ups on tokenized bond or fund issuances. They reduce the operational risk of lost access in exchange for an explicit, documented dependency on the issuer.