Cardano Native Tokens (CNTs) Explained: Use Cases, Benefits, and More
Cardano Native Tokens (CNTs) are one of the foundations of the Cardano blockchain, representing a fundamentally different approach to token creation compared to account-based blockchains like
Introduced with the Mary hard fork in March 2021, CNTs enable users to create and transfer custom tokens directly on the Cardano ledger, without the need for smart contracts.This native functionality eliminates a common attack vector in many blockchain ecosystems and enhances the overall security of tokenized assets.
Unlike ERC-20 tokens, which rely on smart contracts for every operation, CNTs are treated as "first-class citizens" on the Cardano network. They operate without intermediary layers like smart contracts for basic functions, while still being fully capable of supporting smart contract-based functionalities when needed.
The native tokens are minted, transferred, and stored natively through the extended UTXO (eUTXO) model. This approach not only reduces transaction complexity and cost, but also ensures deterministic behavior, meaning outcomes are more predictable and easier to verify.
Because CNTs do not depend on external scripts for basic operations, they are inherently more secure and resilient, making them particularly attractive for a wide range of use cases, from stablecoins and governance tokens to utility and meme tokens.
The Characteristics of the CNTs contribute significantly to Cardano’s vision of building a scalable and inclusive financial infrastructure for the future.
Characteristics and Benefits of CNTs
CNTs combine several core strengths. Their security is inherent in the design, as they’re processed directly on the ledger, reducing dependency on potentially vulnerable smart contracts.
Transactions are fast and cost-effective, benefiting from Cardano’s PoS consensus, which also ensures minimal environmental impact.
Crucially, the extended UTXO (eUTXO) model on Cardano offers an additional layer of transparency and traceability. This makes it easy to verify the origin of any token, creating an environment of accountability and trust.
Once tokens are received, they are fully owned by the user; there’s no intermediary custody, and the transaction trail remains verifiable on-chain.
These properties distinguish CNTs from many account-based systems, where native ownership and traceability are often dependent on smart contract logic.
The result is a token system that’s not only efficient but also aligned with regulatory expectations around provenance, auditing, and user control, all of which are becoming more relevant as crypto matures.
CNTs on NBX
NBX has become a prominent exchange for trading Cardano Native Tokens, playing a pivotal role in bridging the gap between blockchain innovation and mainstream adoption. By listing a diverse set of CNTs, NBX provides users with direct access to the utility and value of the Cardano ecosystem.
Through its commitment to compliance, security, and ease of use, NBX ensures that trading CNTs is not just technically robust but also accessible to newcomers and institutions alike.
With this infrastructure, NBX not only facilitates the trading of Cardano-native assets like $HOSKY,
$USDM, and $PALM, but also helps integrate them into broader financial and real-world applications, ensuring their utility goes far beyond speculation.
This strong foundation sets the stage for exploring each token’s unique role and contribution to the ecosystem, starting with one of Cardano's most iconic community projects.
Hosky Token on NBX $Hosky is Cardano's first memecoin and a celebrated CNT within the Cardano community. Though created as a joke, $Hosky has developed a passionate following. Launched in 2021, it quickly became a symbol of community-driven innovation on Cardano. The token has no promises of financial returns, yet it continues to be a beacon for engagement and decentralization on the Cardano blockchain. $Hosky was also the first CNT to be listed with a $USDM trading pair on NBX, marking the first-ever listing of a Cardano Native Token paired with USDM on a centralized exchange, which demonstrates its significant role in bridging the gap between meme tokens and stablecoin markets on Cardano. In addition to its playful nature, $Hosky contributes to governance on the Cardano network through participation. The token is involved in discussions related to Cardano’s decentralized governance, further solidifying its influence within the ecosystem. Hosky also runs community-driven programs like the 'Rug Pools' initiative and hosts events such as the Hosky Summit, highlighting its dedication to the @Cardano community.
USDM Token on NBX
$USDM is a unique stablecoin that operates as a CNT. It is fully regulated under the EU’s MiCA regulation and is backed 1:1 by USD or equivalent assets. $USDM allows users to make seamless blockchain-based transactions while maintaining legal protections akin to traditional finance. By using the Cardano blockchain’s native ledger, USDM benefits from faster, cheaper, and more secure transfers without the need for smart contracts. What truly sets $USDM apart is its use of the eUTXO model, which enables native traceability. Unlike account-based stablecoins that rely on smart contracts and centralized ledgers, $USDM leverages Cardano's ledger structure to provide full visibility into the origin of funds. This ensures that once $USDM is in your wallet, it’s fully under your ownership, with no intermediary control. This model also supports stronger compliance, auditability, and trust for institutions and individuals alike. The token is gaining traction in the Cardano ecosystem, and its listing on NBX facilitates its adoption for trading and usage. $USDM’s use cases include DeFi applications, stablecoin liquidity protocols, and on-chain payments.
Palmyra’s PALM Token on NBX
Palmyra’s $PALM token is a promising CNT that is part of the Palm Economy ecosystem.
This ecosystem aims to bring blockchain-level efficiency and transparency to real-world commodity markets.
The $PALM token plays a crucial role in driving the economic activities of Palmyra, which aims to revolutionize industries like commodity trading and supply chain management.
$PALM is also utilized for staking and liquidity provision across Palmyra platforms, offering additional benefits for its holders. Staking $PALM
can earn users rewards through the platform’s rebate mechanism, while liquidity providers earn further rewards on decentralized exchanges.
The Palm Economy embraces ethical sourcing, ensuring transparency in how goods are produced and verified through blockchain-powered tracking.
Whether it's sustainable agriculture or traceable minerals like lithium, $PALM helps validate responsible practices through tokenized systems.
Conclusion
Cardano Native Tokens (CNTs) are essential to Cardano’s vision of secure, efficient, and scalable digital assets.
They operate natively on the Cardano ledger, without the need for smart contracts, yet remain fully capable of supporting advanced programmability when required. This model enhances user control, transparency, and reliability, especially through the eUTXO system, which guarantees ownership and traceability.
NBX leads in making these innovations accessible, making major CNTs like Hosky, USDM, and PALM, available to trade on the platform.
As adoption grows, CNTs are set to power the next wave of Web3 and financial applications.
Ready to take part? Sign up at NBX and start trading CNTs today!!
Securely, easily, and with full regulatory confidence.
