Serve remittance use cases through Lirium's institutional API and Mastercard Crypto Credentials

[GENERAL] Name and surname of main applicant

Martin Kopacz

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Martin Kopacz

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

8

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Lirium, will integrate Cardano to enhance remittances, providing users with cost-efficient cross-border payments and driving financial inclusion using Mastercard's Crypto Credentials capabilities.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

Lirium will complete the Cardano integration without other organizations. But for full disclosure, Lirium’s financial infrastructure relies on BitGo for crypto custody, as well as local partner banks for executing remittance transactions. Additionally, Lirium’s Mastercard Crypto Credentials integration facilitates broad acceptance and enhanced end-user functionality.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

Due to the proprietary nature of the infrastructure, this project will not be fully open source.

[METADATA] Horizons

Financial Services

[SOLUTION] Please describe your proposed solution

Problem statement:

Cardano’s blockchain is currently underutilized in the rapidly growing market for stablecoins, particularly for cross-border payments, which represent a primary use case in the cryptocurrency ecosystem. Despite the increasing demand for efficient and cost-effective remittance solutions, many users in regions like Latin America face significant challenges, including high transaction fees, slow processing times, and limited access to reliable financial services. Traditional banking systems often impose exorbitant fees for cross-border transactions, leaving remittance users underserved and reliant on costly alternatives. This gap in the market not only restricts the potential for Cardano’s blockchain to facilitate seamless and affordable cross-border payments but also hinders the broader adoption of Cardano as a viable solution for real-world financial applications. Without direct integration of stablecoins and a robust infrastructure for remittances, Cardano risks missing out on a critical opportunity to enhance financial inclusion and empower users in underserved markets.

Solution:

To address the challenges faced by remittance users and unlock the potential of Cardano’s blockchain for stablecoin transactions, Lirium, leveraging its capabilities with Mastercard’s Crypto Credentials, proposes an enterprise R&D initiative focused on the integration of Cardano. This initiative will leverage Lirium’s established financial infrastructure and partnerships, including BitGo for secure crypto custody, to create a seamless integration of the Cardano blockchain. The primary deliverable will be the successful integration of Cardano, enabling efficient and cost-effective cross-border payments for remittance users. By ultimately incorporating USDM, the leading fiat-backed stablecoin on Cardano, into Lirium’s services, we aim to provide users with a reliable and low-cost alternative to traditional remittance methods. This integration will not only enhance the user experience for Lirium’s existing customer base across Europe and South America but also position Cardano as a key player in the stablecoin market, driving broader adoption and financial inclusion in underserved regions. Through this strategic partnership, we will create a robust ecosystem that empowers users with faster, cheaper, and more secure remittance options, ultimately transforming the landscape of cross-border payments.

The journey to integrate Cardano into Lirium’s financial infrastructure begins with a comprehensive preparation and onboarding phase, where we will establish a clear project framework and align all stakeholders on our shared vision. This foundational step is crucial for ensuring that the integration process is smooth and efficient. Following this, we will navigate the regulatory landscape, submitting necessary documentation to ensure compliance and secure the inclusion of Cardano as a recognized asset within Lirium’s system. With regulatory approval in hand, we will embark on the technical integration of Cardano into Lirium’s existing infrastructure, utilizing BitGo’s secure custody solutions to facilitate seamless transactions.

As we progress, we will integrate Mastercard’s Crypto Credentials framework, enabling verified on-chain transactions that enhance security and user trust. This integration will be complemented by a robust marketing and communication strategy aimed at promoting the new capabilities to remittance users across Europe and South America. Finally, we will conduct a thorough impact assessment to measure the success of our initiative, tracking key metrics such as transaction volumes. This structured approach not only solidifies our commitment to delivering a transformative solution for cross-border payments but also positions Cardano as essential components of a modern, efficient financial ecosystem that empowers underserved remittance users. Through these milestones, we will create a sustainable and scalable model that drives financial inclusion and enhances the overall user experience in the remittance market.

Future Roadmap and Strategic Vision

Building upon the successful integration of Cardano into Lirium's infrastructure, our long-term vision encompasses transformative initiatives that will revolutionize the remittance landscape. First, we will prioritize the integration of USDM, Cardano's leading fiat-backed stablecoin, enabling users to benefit from a stable, regulated digital asset that maintains perfect price parity with the US dollar while leveraging Cardano's efficient blockchain. This integration will provide remittance users with a trusted medium for cross-border transfers, significantly reducing costs and settlement times. Second, we aim to position Cardano as the primary blockchain within Lirium's service offering, leveraging its superior technical capabilities, lower transaction costs, and robust security features to process remittances more efficiently than traditional rails or competing blockchain solutions. These strategic initiatives will not only enhance the utility of Cardano and USDM but also demonstrate the practical application of blockchain technology in solving real-world financial challenges.

Profile of the key components:

Lirium

Lirium, a regulated provider of crypto services for financial institutions, and a Mastercard Start Path Partner, has been pivotal in deploying Mastercard Crypto Credentials in Latin America. Serving as a backend for banks, Lirium enables smooth crypto transfers with compliance and user safety at the forefront. Its API model, which connects banking systems to blockchain networks, aligns perfectly with Mastercard’s Crypto Credentials’ standards and compliance frameworks. By integrating Cardano, Lirium can expand Cardano’s presence in Latin America, leveraging its infrastructure to facilitate transactions across compliant, high-demand markets in collaboration with Mastercard Crypto Credentials.

Mastercard Crypto Credentials

Mastercard’s Crypto Credential program establishes a secure verification standard for crypto transactions, enabling seamless peer-to-peer payments across multiple blockchains and currencies. By collaborating with businesses like Lirium, Mastercard Crypto Credentials has launched pilot programs across Latin America and Europe, targeting remittance-heavy markets. This initiative simplifies blockchain transactions by verifying supported assets and wallet compatibility, eliminating complex addresses.

Moneta

Moneta is at the forefront of building the USDM fiat-backed stablecoin, a crucial asset for the Cardano ecosystem. USDM serves as a foundational currency for decentralized finance (DeFi) protocols and facilitates instant on-chain payments, positioning itself as a scalable catalyst for the growth and adoption of Cardano. Each USDM is backed 1:1 by the USDM Reserve, which consists of USD bank deposits and US money market funds managed by reputable financial institutions such as Fidelity and Western Asset Management. The value of the USDM Reserve is transparently reported daily on the Cardano blockchain by the independent oracle, Charli3, ensuring trust and reliability. Additionally, USDM’s 1:1 backing is enforced through smart contracts that prevent the issuance of excess USDM, maintaining its stability. Moneta is committed to delivering strong, secure, and transparent stablecoin solutions, empowering Cardano to surpass slower, more costly, and centralized Gen2 blockchains, and driving the future of digital finance.

Exponential Partners

Exponential Partners is a leading consulting firm that specializes in guiding startups, enterprises, and brands through the exploration and adoption of blockchain and AI technologies. With a focus on both Web2 natives and industry leaders, we provide tailored advisory services that bridge knowledge gaps and formulate strategies to drive innovation, growth, and new revenue channels as businesses transition from traditional to digital platforms. By offering customized strategic insights, innovative solutions, and access to our extensive network of industry partners, Exponential Partners ensures a seamless and rewarding journey into digital transformation, making us an invaluable ally in the successful integration of Cardano and USDM into Lirium’s financial ecosystem.

https://www.mastercard.com/news/press/2024/may/mastercard-crypto-credential-goes-live-with-first-peer-to-peer-pilot-transactions-adds-new-partners-to-the-ecosystem/

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

By integrating Cardano into Lirium’s banking networks and Mastercard Crypto Credentials, this project will boost Cardano’s usage for remittances and crypto credential-based transactions, especially in high-demand regions like Latin America. 

We will measure impact through transaction volumes, the number of integrated banks, and the number of users interacting with the network.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Capability to Deliver.

Lirium, as a regulated provider of crypto services for financial institutions, along with Mastercard’s Crypto Credentials established compliance infrastructure, brings a powerful framework for securely delivering crypto services with high levels of trust and accountability. Lirium operates with full regulatory compliance, holding licenses for fiat-to-crypto exchange and qualified custody, backed by regular audits and a $250M insurance reserve to ensure asset safety. Mastercard’s Crypto Credential solution complements this by establishing a standard verification process that confirms user identities and the validity of blockchain transactions, minimizing fraud and facilitating secure peer-to-peer interactions. 

Validation of Feasibility:

The feasibility of our approach is substantiated by Lirium’s successful integration of Mastercard’s Crypto Credential solution in existing pilot programs across Latin America and Europe. This integration has enabled cross-border transactions with secure verification across multiple currencies and blockchain networks, demonstrating both scalability and compliance. Leveraging Crypto Credentials, our solution is designed for plug-and-play adoption by banks and fintechs. This phased rollout ensures robust and reliable execution in high-demand regions like Latin America. By embedding this framework within Cardano, we will create a solution ready for rapid adoption across regulated financial institutions, supporting the growth of Cardano’s blockchain ecosystem.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Preparation & Onboarding (Month 1-2)

• Outputs:
• Develop a comprehensive project framework for integrating Cardano within Lirium’s and Bitgo’s API, as well as Mastercard’s Crypto Credentials.
• Establish detailed timelines, regulatory requirements, and risk management strategies.
• Conduct initial stakeholder meetings with Lirium, Mastercard Crypto Credentials, Exponential Partners, and Moneta to align on project goals and deliverables.

• Acceptance Criteria:

• Completion of a detailed project roadmap, including integration and compliance steps, with a clear launch timeline (Gantt chart).
• Approval from all key stakeholders on the project framework and timelines.

• Evidence:
• Signed-off roadmap and Gantt chart.

Regulatory Requirements (Month 2-3)

• Outputs:
• Prepare and submit formal communication to the Liechtenstein regulator regarding the inclusion of Cardano as recognized assets in Lirium’s system.
• Ensure compatibility with the Bitgo custodial framework and address any regulatory concerns.
• Develop a compliance checklist to ensure all regulatory requirements are met.

• Acceptance Criteria:
• Successful submission to the regulator and conclusion of the three-week moratorium period without feedback.
• Completion of a compliance checklist verified by the legal team.

• Evidence:
• Copy of the submission email and confirmation of no regulatory response after three weeks.

Cardano Integration & Development (Months 3-5)

• Outputs:
• Complete technical integration of Cardano within Lirium’s Bitgo environment.
• Develop liquidity and trading capabilities for buy/sell functions and multi-currency quotes, ensuring Cardano can be utilized effectively.
• Conduct internal testing to ensure system stability and performance.

• Acceptance Criteria:
• Successful execution of on-chain Cardano transaction.
• Completion of internal testing with no critical issues.

• Evidence:
• Screenshot of a customer transaction using Cardano.

Compliance & Crypto Credentials Integration (Months 5-6)

• Outputs:
• Integrate Cardano into Mastercard’s Crypto Credential framework, facilitating verified on-chain transactions through a Crypto Credentials alias.

• Acceptance Criteria:
• Successful on-chain transaction via a Crypto Credentials alias using Cardano.

• Evidence:
• Screenshot showing a customer transaction processed through a Crypto Credentials alias using Cardano.

Marketing and Communication (Month 4)

• Outputs:
• Launch a comprehensive marketing and PR campaign to promote the integration of Cardano, including announcements, press releases, and events across Latin America and Europe.
• Develop a strategic communication plan targeting key stakeholders and potential partners, emphasizing the advantages of using Cardano for remittances.
• 
  
• Acceptance Criteria:
• Execution of promotional activities, including press release, social media campaigns.

• Evidence:
• Press release, social media posts documentation.

Impact Assessment, Report & Project Summary Video (Month 8)

• Outputs:
• Conduct an impact assessment, tracking key metrics such as transaction volumes, and integration success of Cardano.
• Summarize the project’s outcomes in a report and create a video highlighting key milestones, achievements, and insights for the Cardano community.

• Acceptance Criteria:
• Completion and submission of the impact report and project summary video to Cardano Catalyst.

• Evidence:
• Submitted report detailing metrics and insights.

• Project summary video.
• Feedback documentation from stakeholders and community members.

[RESOURCES] Who is in the project team and what are their roles?

Martin Kopacz - Co-Founder & COO at Lirium AG: Project Lead

Fabian Cuesta - Co-Founder & CPO at Lirium AG: Technical Integration

Matthew Plomin - Co-Founder at Moneta (USDM): USDM Integration

Riz Pabani - Co-Founder @ Exponential Partners: Project Management

Sacha Windisch - - Co-Founder @ Exponential Partners: Marketing Lead

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Total Budget in USD: $630,000 (1,800,000 ADA at an average ADA price of $0.35)

Milestone 1 - Preparation & Onboarding

• Total Budget: $75,600 (12%)

• Elapsed Time: 2 months

• Focus: Establish project framework, onboard team, and set up initial compliance requirements.

Resources:

• Project Manager (30 days) - $22,680

• Technical Architect (25 days) - $23,625

• Compliance & Regulatory Specialist (20 days) - $18,900

• Admin Support (15 days) - $6,300

• QA/Tester (5 days) - $4,095

Milestone 2 - Regulatory Requirements

• Total Budget: $113,400 (18%)

• Elapsed Time: 2 months

• Focus: Address regulatory compliance for Cardano integration.

Resources:

• Project Manager (20 days) - $22,680

• Compliance & Regulatory Specialist (40 days) - $47,250

• Technical Architect (15 days) - $23,625

• Admin Support (20 days) - $8,400

• QA/Tester (1 day) - $1,445

Milestone 3 - Cardano Integration & Development

• Total Budget: $126,000 (20%)

• Elapsed Time: 2 months

• Focus: Develop and integrate Cardano’s blockchain infrastructure.

Resources:

• Project Manager (15 days) - $21,000

• Technical Architect (30 days) - $47,250

• QA/Tester (15 days) - $21,000

• Admin Support (7 days) - $4,900

Milestone 4 - Compliance & Crypto Credentials Integration

• Total Budget: $126,000 (20%)

• Elapsed Time: 1 month

• Focus: Finalize compliance checks and integrate crypto credentials.

Resources:

• Project Manager (15 days) - $21,000

• Technical Architect (25 days) - $39,375

• Compliance & Regulatory Specialist (15 days) - $26,250

• QA/Tester (8 days) - $13,440

Milestone 5 - Marketing and Communication

• Total Budget: $126,000 (20%)

• Elapsed Time: 2 months

• Focus: Develop marketing strategies and communication plans for Cardano integration.

Resources:

• Project Manager (20 days) - $28,000

• Marketing & PR Specialist (40 days) - $50,400

• Technical Architect (10 days) - $15,750

• Admin Support (15 days) - $10,500

• Compliance & Regulatory Specialist (8 days) - $21,350

Final Milestone - Impact Assessment, Report & Project Summary Video

• Total Budget: $31,500 (5%)

• Elapsed Time: 1 month

• Focus: Assess project impact and create a summary report and video.

Resources:

• Project Manager (10 days) - $10,500

• Marketing & PR Specialist (8 days) - $10,080

• Technical Architect (2 days) - $1,890

• Admin Support (5 days) - $2,730

Contingency Fund

• Total Budget: $31,500 (5%)

• Purpose: Reserved for unexpected expenses or additional resource requirements.

Daily Rates:

• Project Manager: $756/day

• Technical Architect: $945/day

• Compliance & Regulatory Specialist: $945/day

• Admin Support: $420/day

• Marketing & PR Specialist: $1,260/day

• QA/Tester: $945/day

Note: All figures are approximate and may be adjusted based on actual project needs and requirements.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The project’s cost represents significant value for the Cardano ecosystem by strategically positioning Cardano within the high-impact, high-demand remittance market, particularly in underserved regions like Latin America. Here’s how this initiative ensures an efficient return on investment for Cardano:

1. Scalable Infrastructure and Ecosystem Integration: By incorporating Cardano into Lirium’s API and integrating Mastercard’s Crypto Credentials, this project directly embeds Cardano’s blockchain technology into regulated financial services, offering a foundation for future scalability.This creates a network effect where banks, fintech companies, and end-users will have streamlined access to Cardano’s infrastructure, amplifying Cardano’s presence and utility within the remittance market.
2. Cost-Efficiency and User Adoption: Through this project, Cardano will be positioned as a primary solution for remittances, offering faster, lower-cost transactions than traditional methods. This not only drives adoption but also reinforces Cardano’s value proposition as a cost-efficient blockchain for real-world use cases, meeting demand for affordable financial services while addressing financial inclusion goals.
3. Enhanced Security and Compliance with Mastercard Crypto Credentials: Leveraging Mastercard’s Crypto Credentials offers an additional layer of secure, verified transactions that ensure regulatory compliance and increase trust among institutions and users. This positions Cardano as a leader in regulated blockchain applications, making it more attractive to potential partners and users who prioritize security and compliance in the crypto space.
4. Comprehensive and Measurable Outcomes: The project’s structured milestones, which cover onboarding, regulatory alignment, technical integration, compliance, and marketing, ensure a controlled, transparent approach with measurable outcomes. Each phase is designed to build Cardano’s reputation and expand its ecosystem, with measurable impacts such as increased transaction volumes, integration with financial institutions, and the number of users engaging with Cardano-powered remittances.
5. Strategic Alliances with Established Partners: Through collaborations with Lirium, Mastercard Crypto Credentials, and Moneta, Cardano gains access to established networks, compliance frameworks, and local banking relationships across Latin America and Europe. This alliance drives faster adoption, accelerates market entry, and reduces the cost and complexity of gaining new users, providing high-value growth for the ecosystem.