Integration of ADA and Cardano native assets for Custody and Tokenisation on Palisade Custody Platform

[GENERAL] Name and surname of main applicant

Kane Aidoo-Williams

[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

Manthan Dave - mdave@palisade.co

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

3

[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)

We will integrate Palisade with ADA and Cardano Native Assets for custodial services and tokenisation, enabling seamless management and utilisation of these assets within the ecosystem.

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

No

[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.”

No dependencies

[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

Palisade's regulated custody platform, built for institutions is fully proprietary. At this stage there are no plans to open source our products but that may change in the future.

[SOLUTION] Please describe your proposed solution

Palisade offers institutional grade, highly composable services for digital asset custody and tokenisation. Our un-opinionated approach allows you to navigate both regulated and unregulated environments:

• Flexible Security: Leverage both HSM and MPC technology for enhanced security options.
• Custody Choice: Select a regulated custodial environment or opt for a non-custodial wallet infrastructure for yourself or your users.
• Seamless Integrations: Connect to blockchains through our user-friendly web platform or via API credentials.
• Tokenisation Engine: A custom built tokenisation engine to issue, mint and burn Native Assets on compatible protocols.

Our focus is on providing the tools and expertise you need to build and scale your web3 applications. You concentrate on innovation, while we handle the security and infrastructure.

Palisade has a strong presence in the Ethereum and XRP ecosystems. Now, we're excited to integrate Cardano into our solution, positioning ourselves at the forefront of its growth.

Our solution uniquely addresses the lack of robust custody and tokenisation services for ADA and native assets in the Cardano ecosystem. By leveraging Palisade's infrastructure, we will empower both institutional and retail participants to securely manage and utilise their assets, fostering broader adoption and development of Cardano's DeFi landscape. This initiative is crucial for Cardano's growth, providing essential infrastructure for asset management and contributing to the ecosystem's maturity and accessibility. We will demonstrate our impact through measurable increases in asset participation and overall ecosystem engagement.

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

Our project will significantly benefit the wider Cardano community by providing essential infrastructure for custody and tokenisation of ADA and native assets. This will:

1. Enhance Accessibility: Our solution will make it easier for both institutional and retail users to securely manage and utilise ADA and native assets, fostering broader participation and adoption within the Cardano ecosystem.
2. Expand DeFi Capabilities: By enabling seamless custody and tokenisation, we contribute to the growth of decentralised finance (DeFi) on Cardano, unlocking new avenues for financial innovation and product development.
3. Tokenisation: Secure custody and tokenisation infrastructure to enable the safe guarding and issuance of multiple asset classes on the Cardano blockchain - inc. Stablecoins, Real Estate etc.

Measuring Impact:

• We will measure impact quantitatively by tracking the growth in assets under custody, value and volume of native assets being issued/minted and the number of Palisade clients engaging with Cardano.
• Qualitatively, we will gather feedback from users regarding the ease of use, security, and overall satisfaction with our services.

Sharing Outputs:

• We will share our impact through regular reports, blog posts, and presentations within the Cardano community, highlighting key metrics and success stories.
• Collaborations with community leaders, developers, and other ecosystem stakeholders will allow us to showcase opportunities and insights derived from our project, encouraging further innovation and adoption.

[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?

Our capability to deliver this project with high levels of trust and accountability stems from our team's extensive experience in blockchain technology, finance, and project management. Here's why we are well-suited to execute this project:

Palisades founders have scaled early stage POC's to serving billions of dollars in TVL at Ripple and have been in the blockchain space for almost a decade. Additionally Palisade is a VC backed institutional grade custody platform service clients in production across a multitude of use cases.

1. Expertise in Blockchain: Our team comprises seasoned professionals with deep expertise in blockchain technology, particularly in the areas of custody and tokenisation. Our founders have worked at key blockchain organisations such as Ripple and AVA Labs and have a wealth of experience building blockchain applications
2. Infrastructure Expertise: We understand the intricacies of blockchain infrastructure and are familiar with the unique challenges and opportunities within the Cardano ecosystem.
3. Financial Industry Experience: Many team members have backgrounds in traditional finance and fintech, bringing a wealth of experience in managing assets, compliance, and risk management. This experience is crucial for implementing robust custody solutions.
4. Proven Track Record: We have successfully delivered similar projects in the past, demonstrating our ability to execute and deliver results in a timely and efficient manner.
5. Partnerships and Collaborations: We have established partnerships with reputable institutions and service providers in the blockchain and financial industries, enabling us to leverage their expertise and resources to validate and enhance our approach.

Steps to Ensure Trust and Accountability:

• Transparent Governance: We have well established clear governance frameworks and protocols for managing funds, ensuring transparency in decision-making and resource allocation.
• Third-Party Audits: Regular audits by independent third parties will be conducted to verify the security and integrity of our custody infrastructure.
• Compliance with Regulations: We will adhere to relevant regulatory frameworks and standards, implementing robust KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures to ensure proper fund management and security.
• Community Engagement: Open communication with the Cardano community will be maintained throughout the project, providing updates and soliciting feedback to build trust and accountability.

By combining our expertise, track record, and commitment to transparency, we are confident in our ability to deliver this project with the highest levels of trust and accountability.

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

Milestone 1: Planning and Analysis

Output: SOW outlining specific requirements for Cardano integration including technical requirements, UX requirements, feasibility study, risk assessment and resource allocation

Acceptance criteria: Palisade team can comfortably progress to technical integration and

Evidence of milestone completion: PDF SOW Document

Milestone 2: Technical Development/integration

Milestone outputs: A fully working integration with ADA and Native Assets based on the SOW within the Palisade custody platform.

Acceptance criteria: A user can custody ADA and Native Assets. A user can tokenize Native Assets within the Palisade internal development environmentent.

Evidence of milestone completion: Video recording of the integration in action and links to transactions and wallets on the Cardano testnet explorer.

Milestone 3: Implementation and Launch

Milestone outputs: Production ready integration, remediate outstanding issues with integration and deploy to a Production environment.

Acceptance criteria: A user can custody ADA and Native Assets. A user can tokenize Native Assets within the Palisade production environment.

Evidence of milestone completion: Video recording of the integration in action and links to transactions and wallets on the Cardano mainnet explorer.

Milestone 4: Public rollout and commercial traction

Milestone outputs: Public marketing of the new Cardano integration and commercial pipeline development.

Acceptance criteria: Developed marketing campaign referencing Palisades integration with Cardano and light GTM for commercial traction of Cardano.

Evidence of milestone completion: Social posts referencing Palisades integration with Cardano and export of commercial pipeline in respect of Cardano use cases

Milestone 5: Onboard pilot customer and develop use-case

Milestone outputs: Palisade client in production with custody or tokenisation use case on Cardano network

Acceptance criteria: Palisade client in production with custody or tokenisation use case on Cardano network

Evidence of milestone completion: Testimonial or evidence of signed agreement.

Milestone 5: Onboard pilot customer and develop use-case

Milestone outputs: Palisade client in production with custody or tokenisation use case on Cardano network

Acceptance criteria: Palisade client in production with custody or tokenisation use case on Cardano network

Evidence of milestone completion: Testimonial or evidence of signed agreement.

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

Tom Kiddle - https://www.linkedin.com/in/tkiddle/

Thomas is a seasoned software engineer and entrepreneur with a robust background in e-commerce, payments, and blockchain. With nearly two decades of experience, Thomas has worked at notable companies such as BT, Apple, and Ripple. Driven by a passion for advancing the digital economy, Thomas co-founded Palisade, a fully regulated digital asset custody provider.

Manthan Dave - https://www.linkedin.com/in/manthanhd/

Manthan is a seasoned technology leader. His expertise spans blockchain and fintech, with notable roles at Ripple and Ava Labs, where he contributed to decentralized payment systems and Ethereum virtual machine technologies. Previously at Capital One, he led innovations in identity management and multi-factor authentication. Manthan’s career is marked by a deep commitment to advancing the digital asset and blockchain sectors.

Kane Aidoo-Williams - https://www.linkedin.com/in/kane-aidoo-williams/

Kane has a robust background in blockchain, crypto and digital assets. He previously served at Komainu, a regulated digital asset custodian for institutions, and R3, an enterprise blockchain platform. During his career he has honed his skills and knowledge in sales, business development and marketing. Kane holds a BA in Sociology from the University of Kent and a LLB in Law from the University of Birmingham

Rizwan Pabani - https://www.linkedin.com/in/rizpabani/

Sacha Windisch - https://www.linkedin.com/in/sachawindisch/

Rizwan and Sacha are both seasoned veterans and ex-Cardano Foundation partnership managers. We will work in close collaboration to explore opportunities to identify and work with key Cardano projects, as well as custody and tokenisation clients who wish to utilise the Cardano ecosystem.

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

The goal of Palisade is to provide businesses and institutions with secure access to the Cardano ecosystem. This access includes custody and tokenisation of assets on the network. As such this is a significant project that will involve technical, operational, BD and marketing efforts. From extensive experience a typical integration and roll out of a new blockchain will take on the following format:

Phase 1: Planning and Analysis [100,000 ADA]

1. Additional requirement gathering: Identify the specific needs and expectations of current and potential clients related to Cardano, ADA and Native Assets. Determine the exact features and use cases requiring support. e.g. tokenisation of Native Assets for RWA use cases and custody of ADA and Native Assets
2. Feasibility study: Assess the technical and business feasibility of integrating the new blockchain. This includes evaluating the blockchain's security features, consensus mechanisms, transaction speed, and compatibility with existing systems.
3. Risk assessment: Identify potential risks associated with integrating this blockchain, including technical challenges, security vulnerabilities, and regulatory compliance issues.
4. Resource allocation: Allocate necessary resources team members and budget.

Phase 2: Technical Development / Integration [300,000 ADA]

1. Infrastructure setup: Set up the necessary infrastructure to support Cardano. This may include running a node or working with existing partners who supply Palisade with node infrastructure.
2. Integration development: Begin coding the integration with a focus on creating secure, efficient, and scalable connections between Palisade and the Cardano blockchain.
3. Testing: Conduct thorough unit, integration and user testing as well as security audits. Stress test the system to handle anticipated volumes and potential security threats.
4. Quality assurance: Ensure that all functionalities work as intended and that the integration meets all regulatory and compliance requirements.

Phase 3: Implementation and Launch [50,000 ADA]

1. Internal rollout: Before public launch, implement the integration internally or in a controlled environment. Monitor for any issues and gather initial feedback.
2. Training and documentation: Train support and technical staff on Cardano features. Potentially create user guides, FAQs, and other documentation that will assist both staff and customers if there are specific characteristics not captured in current Palisade documentation.
3. Marketing and communication Strategy: Develop a marketing plan to promote the new integration. Highlight the benefits and potential use cases of the Cardano in communications external communications.
4. Public launch: Release the Cardano integration to new and existing clients.

Phase 4: Public rollout and commercial traction and POC [50,000 ADA]

1. Customer feedback: Actively collect customer feedback and monitor how the new Cardano is being used. Adjust support and services based on user experience.
2. Iterative improvements: Implement improvements and new features based on real-world use and feedback. Continuously refine Cardano integration and surrounding platform to better serve Cardano use-cases within Palisade.
3. Scaling: As adoption grows, ensure your infrastructure can scale to meet demand. Consider further enhancements to improve transaction processing speeds and security features.
4. Partnerships and POC: Explore strategic partnerships to expand secure access to Cardano within Palisade. Specifically engaging with institutions for tokenisation use-cases involving Native Assets.

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

The cost of our project represents value for money for the Cardano ecosystem in several key ways:

1. Essential Infrastructure: The project's cost is justified by the critical infrastructure it provides. Custody and tokenisation services are foundational components necessary for the growth and functionality of Cardano's ecosystem. By investing in this infrastructure, the ecosystem gains the necessary tools to attract and retain users, developers, and investors.
2. Economic Growth: The project stimulates economic activity within the Cardano ecosystem by facilitating asset management and tokenisation of RWAs, leading to an increase in TVL on Cardano. This economic growth can lead to increased demand for ADA and native assets, fostering a vibrant and sustainable ecosystem.
3. Access to ADA for Institutional Customers: Palisade is enabling its institutional customer base to access ADA for the first time. By providing access to ADA, Palisade is facilitating broader institutional involvement in the Cardano ecosystem. This should lead to increased adoption of ADA among institutional investors, potentially bringing new capital and interest into the Cardano network.
4. Tokenisation of RWAs (Real World Assets): The conversations that Palisade are engaged in heavily involve the tokenisation of RWAs. The tokenisation of RWAs unlocks liquidity and increases accessibility of the underlying assets. By integrating Cardano into Palisade’s existing technology, our partners who are undertaking tokenisation projects on alternative protocols can also tokenise on Cardano in a simplified fashion, increasing adoption of Cardano.
5. Competitive Advantage: By addressing gaps in custody and tokenisation infrastructure, Cardano gains a competitive edge in the blockchain space. Providing robust and user-friendly services attracts new users and projects, solidifying Cardano's position as a leading platform.

The cost of our project is a strategic investment to support Cardano's growth and competitiveness in the blockchain industry. Our team’s expertise in digital and strong relationships in the Cardano community and beyond mean that with a small initial investment, we can create opportunities for the Cardano ecosystem to expand. This growth will benefit everyone by attracting more users to the Cardano ecosystem and increase the TVL.

The cost of our project represents a strategic investment aimed at supporting Cardano's growth and competitiveness in the blockchain industry. Leveraging our team's expertise in digital technologies and strong relationships within the Cardano community and beyond, a small initial investment can yield substantial opportunities for expanding the Cardano ecosystem. This growth will benefit all stakeholders by attracting more users to the Cardano network and increasing Total Value Locked (TVL)