diff --git a/src/ERC20Factory.sol b/src/ERC20Factory.sol
new file mode 100644
index 0000000..29a034b
--- /dev/null
+++ b/src/ERC20Factory.sol
@@ -0,0 +1,26 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.24;
+
+import "./InitiaERC20.sol";
+import "./ERC20Registry.sol";
+
+contract ERC20Factory is ERC20Registry {
+    event ERC20Created(address indexed erc20, address indexed owner);
+
+    function createERC20(
+        string memory name,
+        string memory symbol,
+        uint8 decimals
+    ) external returns (address) {
+        InitiaERC20 erc20 = new InitiaERC20(name, symbol, decimals);
+
+        // register the ERC20 contract with the ERC20 registry
+        ERC20_REGISTRY_CONTRACT.register_erc20_from_factory(address(erc20));
+
+        // transfer ownership of the ERC20 contract to the sender
+        erc20.transferOwnership(msg.sender);
+
+        emit ERC20Created(address(erc20), msg.sender);
+        return address(erc20);
+    }
+}
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