# ERC-7621 Standard

ERC-7621 is the Basket Token , a new Ethereum token standard that enables the creation and management of tokenized investment portfolios on-chain. It is the technical foundation on which all BSKTs are built.

## What is ERC-7621?

ERC-7621 defines a standard interface for basket tokens: composite tokens that represent a weighted collection of underlying ERC-20 tokens. It is a smart contract standard for on-chain index funds.

The standard was proposed by the Alvara Protocol team and is documented as an Ethereum Improvement Proposal (EIP).

**EIP Reference:** [EIP-7621](https://eips.ethereum.org/EIPS/eip-7621)

## Why a New Standard?

Before ERC-7621, creating a tokenized portfolio on-chain required custom smart contracts, bespoke logic, and significant development effort. There was no standardized way to:

* Represent a basket of tokens as a single tradeable unit
* Define and enforce token weightings
* Handle deposits, redemptions, and rebalancing in a consistent way
* Represent management rights as transferable assets

ERC-7621 solves these problems by providing a standard interface that any protocol can implement.

## Key Capabilities

### Portfolio Representation

Each ERC-7621 token represents a basket of underlying ERC-20 tokens with defined weights. The token's value is derived from the sum of its constituent assets.

### Manager Rights

ERC-7621 includes the concept of a , a privileged address that can modify the basket's allocation. Management rights are represented as an NFT, making them transferable and tradeable.

### Deposit & Redemption

The standard defines how users can deposit capital into a basket (receiving LP tokens) and redeem LP tokens for underlying assets.

### Rebalancing

Managers can update the basket's token allocation through a standardized rebalancing interface.

## Cross-Chain Potential

ERC-7621 is an EVM standard, meaning it can be deployed on any EVM-compatible blockchain. Alvara currently operates on Ethereum mainnet, with Base deployment planned for Q1 2026. The standard itself is chain-agnostic and is designed to support multi-chain baskets in the future (see the Development Roadmap in the White Paper).

## Building on ERC-7621

The ERC-7621 standard is publicly documented as an EIP. Developers interested in the standard can review the specification at the link above. As the protocol moves toward open-source, additional developer resources will be published.


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