Stellar Protocol 17 introduced Asset Clawback on June 1st, 2021, enabling issuers to recover tokens from holders with opt-in consent. This feature facilitates regulated asset issuance like bonds and equities while maintaining transparency through visible account flags.
Stellar Protocol 17 launched Asset Clawback, a new feature comprising two operations and an account flag that allows issuers to recover tokens from token-holding accounts. The opt-in mechanism requires users to explicitly accept clawback-enabled assets, with all such assets clearly marked by visible account flags on the public ledger. The feature simplifies issuance of regulated assets including money market funds, bonds, and equities. Setup involves configuring an issuing account with clawback flags, creating a trustline and issuing the asset to a payee account, then executing a clawback operation to recover tokens. This capability addresses regulatory compliance needs and extends Stellar's utility for bringing traditional financial instruments onto the blockchain.
