MiCA-Compliant RWA Tokenization on Cardano by TokenLink

[GENERAL] Name and surname of main applicant

Zug Software Solutions

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

Entity (Incorporated)

[GENERAL] Requested funds in ada

94000

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

4

[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 explore the legal requirements and identify essential tools to tokenize RWAs under MiCA on Cardano, laying the groundwork for new financial opportunities.

[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

We will share as much information as possible, this might exclude things like contracts signed with law firms etc.

[METADATA] Horizons

RWA

[SOLUTION] Please describe your proposed solution

We aim to explore the MiCA (Markets in Crypto-Assets) regulatory framework and understand the legal and technical requirements for issuing tokenized real-world assets (RWAs) on Cardano, with tokenized stocks as a primary example. MiCA provides clear guidelines for asset tokenization, but there are still uncertainties about how these regulations will apply specifically to the Cardano ecosystem and what tools need to be built for compliant tokenization.

Our approach is to conduct thorough research into the legal landscape, required licenses, and the necessary technical tools on Cardano. We plan to engage with legal experts, regulatory advisors, and assess gaps in the current Cardano infrastructure. By uncovering these requirements, we aim to establish a roadmap for building a MiCA-compliant RWA tokenization solution, benefiting Cardano by attracting institutional investors and expanding use cases.

This project is critical for Cardano’s growth in regulated financial markets, especially in Europe. Demonstrating compliance with MiCA for RWAs will attract institutional users and improve liquidity, enhancing trust in the ecosystem.

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

Our project will have a significant positive impact on the Cardano community by laying the foundation for compliant RWA tokenization, like tokenized stocks. This work could be one of the first compliant RWA solutions in the blockchain space, attracting institutional players and increasing Cardano's appeal in regulated financial markets.

We aim to share the results of our research through reports that detail the legal requirements, technical tools, and compliance needs for MiCA-compliant RWA tokenization. These findings will unlock future opportunities, increasing adoption and expanding Cardano's use cases, especially in the European market.

[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?

We are a team with a strong combination of expertise in the Cardano blockchain and knowledge of the MiCA regulatory framework. Additionally, we have connections to legal professionals with experience in fintech regulations.

Our plan is to:

1. Analyze the MiCA framework, consult legal experts, and assess the requirements for tokenizing RWAs on Cardano.
2. Evaluate the technical tools and infrastructure needed to ensure compliance.
3. Deliver regular updates and ensure transparency through structured milestones and reports.

We are confident in our ability to manage this project effectively.

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

Milestone Outputs:

Initial report outlining the MiCA regulatory framework and legal requirements for tokenizing RWAs (e.g., stocks).

Acceptance Criteria:

Completion of a legal analysis identifying licenses needed and compliance challenges.

Evidence of Milestone Completion:

A publicly available report summarizing key findings.

Milestone Outputs:

Report detailing the technical tools and infrastructure adjustments required for tokenizing RWAs under MiCA on Cardano.

Acceptance Criteria:

A comprehensive document identifying technical gaps in Cardano’s infrastructure and proposing solutions.

Evidence of Milestone Completion:

A published technical report for the Cardano community.

Milestone Outputs:

Report outlining the steps needed for preparing and applying for the necessary licenses for MiCA-compliant RWA tokenization.

Acceptance Criteria:

A complete roadmap describing the licensing process, timeline, and resources required.

Evidence of Milestone Completion:

A final draft outlining the roadmap for future RWA tokenization projects.

Milestone Outputs:

Final report consolidating all legal, technical, and licensing insights, offering a clear, actionable roadmap for the next steps in RWA tokenization on Cardano.

Acceptance Criteria:

A completed strategic plan for the next project phase, including actionable recommendations for license acquisition and technical development.

Evidence of Milestone Completion:

A publicly distributed final report summarizing research findings and next steps.

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

• Lead Project Manager: Oversees the project, coordinates teams, manages timelines, and ensures deliverables are met. Requires project management skills and knowledge of MiCA compliance.

• Blockchain Developer (Cardano): Leads the technical analysis, identifies gaps, and recommends tools for MiCA-compliant RWA tokenization.

• Research Analyst: Supports legal and technical teams by gathering data, analyzing trends, and assisting in report development.

• External Partnership: Collaboration with a legal firm specializing in DeFi regulations and MiCA compliance for detailed legal guidance.

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

• Legal and Regulatory Analysis: 40,000 ADA
• Technical Feasibility Assessment: 25,000 ADA
• Project Management: 15,000 ADA
• Research Analyst: 8,000 ADA
• Miscellaneous Expenses: 6,000 ADA

Total: 94,000 ADA

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

This project represents excellent value for the Cardano ecosystem by focusing on foundational research into tokenizing RWAs under MiCA, which will drive institutional adoption and expand Cardano’s use cases. The costs are based on competitive rates for legal, regulatory, and technical expertise, minimizing long-term risks and maximizing future project potential.