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Hedera enables the native creation of fungible and non-fungible tokens through its SDKs, eliminating the need for smart contracts. This approach leverages Hedera’s core features like high TPS, security, and low latency for an optimized user experience. Additionally, the Hedera Token Service provides a cost-effective method for tokenization. Smart contracts on Hedera can also interact with this service via the Hedera Token Service System contract, offering functionalities like token creation, burning, and minting through the EVM. Some of the key functions defined in the Hedera Token Service System Contract include: Given your HTS token address, you can invoke these functions:

Example

Token-proxy bytecode under Pectra (HIP-1340)

Every HTS token has an EVM address that behaves like a contract, so calling IERC20(tokenAddress).transfer(...) or IERC721(tokenAddress).ownerOf(...) routes the call into the HTS system contract via the facade mechanism originally defined by HIP-218 / HIP-719 / HIP-755 / HIP-906. Pre-Pectra, the bytecode returned for a token-proxy address was a runtime-synthesized stub that performed a DELEGATECALL into the HTS system contract at 0x167. Under Pectra, the token-proxy mechanism is re-implemented using the EIP-7702 Delegation Indicator format. The same applies to HSS schedule-proxy addresses, which point at the Hedera Schedule Service system contract. User-facing impact: None. Facade calls (IERC20, IHRC.associate(), IHRC.dissociate(), etc.) continue to work exactly as before; the change is purely in how the proxy is expressed in bytecode. Tooling impact: Block explorers, indexers, custom bytecode introspection, and any contract logic that compares HTS-token bytecode against a known fixed value must be updated. The new value is the constant 23-byte Delegation Indicator above, which is identical across all HTS token addresses.
Direct EOA delegation to the HTS system contract (or any other system contract) from a regular account is forbidden, and those calls no-op. Only the network-owned token-proxy and schedule-proxy accounts are permitted to “delegate” to a system contract.

Additional References

GitHub