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Pointer contracts are now primarily a legacy and migration tool. Per Proposal 115, no new CosmWasm contracts can be uploaded or instantiated on Sei, so the CW20 / CW721 / CW1155 to ERC20 / ERC721 / ERC1155 pointer flow only applies to already-deployed CosmWasm contracts. Do not use native-denom pointers to build IBC or tokenfactory integrations. IBC is disabled in both directions, and tokenfactory is not a supported development path. Existing IBC balances may remain accessible through their pointers, but a pointer does not restore the route to the origin chain. For new tokens or NFTs, deploy ERC20 / ERC721 / ERC1155 contracts directly on the EVM.
Pointer Contracts enable tokens to be used interoperably in both EVM and Cosmos environments. Intended to be efficient and quick to deploy, a pointer serves as an interpreter between the two “languages” used in either execution environment.

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Why Pointer Contracts

Without Pointer Contracts A world without pointer contracts Wallets and clients for feature-rich protocols typically support only a single execution environment. EVM wallets handle ERC-20 coins and ERC-721 NFTs but cannot interact with Cosmos-SDK based assets due to different token standards and interaction methods. The same problem exists for clients built for other protocols (like Cosmos and its various SDK modules) which cannot directly interact with Ethereum-based contracts or ERC tokens. Pointer Contracts solve this by enabling interoperability of either protocol, regardless of the client interface. With Pointer Contracts With pointer contracts, all tokens can be accessed by wallets of either environment

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How Pointer Contracts Work

How Pointer Contracts Work Pointer contracts enable seamless interoperability Each smart contract is limited to one associated pointer contract, which must be registered on chain when deploying. This prevents conflicts and provides a reference point for verifying the authenticity of the paired contract itself.