Tokenized Treasury Bills and Government Bonds on Cardano: $2.2 Billion TVL on Other Chains, None on Cardano!

[GENERAL] Name and surname of main applicant

Rahul Konudula

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

Entity (Incorporated)

[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)

A framework for governments to issue compliant tokenized bonds with lower denominations and no intermediaries, attracting institutional liquidity and everyday investors to Cardano.

[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?

Yes

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

The Project will be fully open source under the MIT License, ensuring that anyone can inspect, modify, and build upon the code, provided they adhere to the original license terms.

[METADATA] Horizons

RWA

[SOLUTION] Please describe your proposed solution

The traditional financial system's approach to issuing and trading Treasury Bills and Government Bonds suffers from inefficiencies, multiple intermediaries, and high entry barriers, limiting participation for both institutional investors and individuals. 

Our solution addresses these issues by proposing a decentralized framework on Cardano, enabling fund managers like BlackRock and Franklin Templeton to issue complaint government tokenized bonds directly to investors on Cardano. This model streamlines bond issuance, removes intermediaries, and lowers bond denominations, making financial participation more accessible to a wider audience.

Validation in the Market

The demand for tokenized Treasury Bills is skyrocketing as market leaders like BlackRock and Franklin Templeton rapidly expand to meet investor interest:

• BlackRock’s BUILD Fund has reached a market cap of $531.9 million, reflecting massive investor appetite for tokenized Treasuries.
• Franklin Templeton’s BENJI Token hit $437.5 million, showcasing how traditional finance giants are leveraging blockchain for secure, diversified portfolios.

Other notable players, like Ondo U.S. Dollar Yield ($441.1 million) and Hashnote Short Duration Yield Coin ($309.4 million), are also gaining momentum, while emerging frameworks like OpenEden’s TBILL Vault and Spiko’s US T-Bills Money Market Fund capture significant market share.

This growing trend proves that tokenized Treasury Bills are more than a niche innovation, they're becoming a key asset class for institutional and retail investors alike.

Cardano's Opportunity

Despite the explosive growth in tokenized Treasury products on other blockchains, Cardano currently lacks a robust framework for tokenizing government bonds and Treasury Bills. This absence limits Cardano's ability to attract institutional liquidity and capitalize on the booming demand for secure, compliant, and easily tradable digital assets. Addressing this gap is crucial for positioning Cardano as a leading framework in the tokenized asset ecosystem, bridging the divide between traditional finance and DeFi.

Technical Components of the Framework

To bridge this gap and position Cardano as a frontrunner in the tokenized asset space, we propose the following technical components to develop this framework:

• Smart Contracts: Bond issuance, compliance, and redemption using Cardano's smart contracts for secure, transparent transactions.
• DID Compliance: Integrates Decentralized Identity (DID) for seamless KYC/AML verification, ensuring a compliant ecosystem.
• Fractional Ownership: Uses fractional tokenization of T-bills for lowering entry barriers for retail investors.
• Permissionless Liquidity Pools: Enables direct bond issuance and trading without intermediaries, reducing costs and allowing dynamic pricing.
• Tokenized Asset Lifecycle Management (TALM): Manages the entire lifecycle of tokenized bonds, from issuance to redemption, ensuring efficient processes.

Target Audience and Engagement

• Institutional Investors: Attracts institutional liquidity providers seeking secure, compliant investments in tokenized government bonds.
• Everyday Citizens: Lowers bond denominations and simplifies the buying process, enabling broader participation in government-backed assets.

Long-Term Vision for Cardano

• Ecosystem Growth: Drives asset diversification on Cardano, attracting both TradFi and DeFi participants.
• DeFi Expansion: Integrates new real-world assets (RWAs) into Cardano’s DeFi ecosystem, creating new investment opportunities.

Uniqueness of Our Solution

Our framework uniquely connects government bodies with investors through Cardano’s decentralized infrastructure, eliminating intermediaries and reducing costs. By standardizing tokenized bond issuance, we aim to set a new benchmark for transparency, compliance, and efficiency in real-world asset tokenization. This approach not only aligns with DeFi principles but also fosters institutional adoption, positioning Cardano as the leading platform for secure, compliant RWA investments.

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

Our framework is designed to position Cardano in compliant tokenized assets such as T-Bills and Govt Bonds, attracting institutional liquidity, boosting DeFi growth, and enhancing its global credibility.

1.Value to the Cardano Community

• Institutional Liquidity: Following the success of Ethereum-based solutions like BlackRock’s BUILD Fund and Franklin Templeton’s BENJI Token, our framework aims to channel similar liquidity into Cardano by enabling compliant tokenized bond issuance.
• DeFi Expansion: Drawing inspiration from Ondo Finance and Hashnote’s integration of real-world assets (RWAs) into DeFi, our solution will bring secure, tokenized bonds to Cardano’s DeFi ecosystem, unlocking new yield opportunities.

2.Impact Measurement

Any project or institution building on Cardano using our tokenized bond framework can track their success through the following metrics:

• TVL Growth: Track the Total Value Locked (TVL) in tokenized bonds on Cardano for projects utilizing our framework, benchmarking their growth against established leaders like Ethereum’s BENJI Token.
• Adoption Metrics: Measure the increase in institutional and retail participation for initiatives built on our framework, comparing their traction on Cardano versus similar developments on other blockchains.
• Track Cardano’s Adoption: Measure the integration of tokenized bonds into Cardano’s DeFi ecosystem, assessing how projects using our framework drive liquidity and adoption compared to successes like Ondo Finance on Ethereum.

3.Sharing Outputs and Opportunities:

• Community Engagement: We will share our progress and results through Cardano community forums, workshops, and social media to ensure transparency and community involvement.
• Collaborations: Partner with other projects and platforms within the Cardano ecosystem to share insights and enhance interoperability.
• Reports and Updates: Regularly publish reports and updates on our website and through newsletters to keep stakeholders informed about the latest developments and opportunities.

[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?

Team and Expertise

Our team consists of seasoned blockchain and financial services professionals with a proven track record of delivering top-tier Cardano solutions. With over 30 years of combined experience, we ensure transparency, accountability, and high-quality execution that the Cardano community expects.

Development Team

Our skilled development team focuses on building enterprise-grade blockchain solutions for Cardano. They have successfully led multiple Cardano-based projects and specialize in developing scalable, secure dApps tailored to the ecosystem.

Core Competencies

• Enterprise Blockchain Solutions: Expertise in creating decentralized, secure infrastructure for governments and corporations.
• Real-World Asset Tokenization: Specializing in converting physical assets like commodities and real estate into blockchain tokens, enhancing market liquidity.
• Zero Knowledge Proofs (ZKPs): Developing privacy-focused solutions for secure data handling in government and enterprise use cases.
• AI and Blockchain Integration: Leading AI innovations that boost enterprise operations when integrated with blockchain technologies.

Key Projects

• Government Forensics: Partnered with the Indian state of Uttar Pradesh to build a ZKP-powered forensic system on Cardano, ensuring secure and tamper-proof data management.
• Granite Market Tokenization: Transforming India's $2.89 billion granite market by creating the GRNT-1 token on Cardano using Finest, boosting transparency and liquidity in natural resource investments.

Strategic Partnerships

We have established strong collaborations with industry giants and fund managers, including:

Navayuga, Intercontinental Infra, Godavari Project, NCD, and Navayuga Engineering, focusing on proof-of-concept initiatives for Real-World Asset (RWA) tokenization on Cardano.

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

Idea Validation and Market Research

A: Milestone Outputs

• Comprehensive Market Analysis Report: Detailed assessment of the current tokenized Treasury Bills and Government Bonds landscape on other blockchains, including key players, market size, and growth trends.

B: Acceptance Criteria

• Completion of Market Analysis: The market analysis report covers the key aspects, including current market size, growth projections, and major competitors.

C: Evidence of Milestone Completion

• Market Analysis Report: A finalized and reviewed document submitted to the project repository.

Concept Development and Design

A: Milestone Outputs

• Technical Specifications Document: Detailed description of the technical requirements, tools, and technologies to be used in development.
• User Interface (UI) Mockups: Visual designs for the platform’s user interfaces, ensuring user-friendly interactions for institutional and retail investors.

B: Acceptance Criteria

• Successful development and initial testing of a UI Prototype demonstrating core functionalities.
• Complete Technical Specifications: All technical requirements are clearly defined, with no critical gaps identified.

C: Evidence of Milestone Completion

• A UI Prototype - Figma Link with Visual designs for the platform’s user interfaces
• Technical Specifications Document: Completed and approved specifications available in the project documentation.

Technical Feasibility and Prototyping

A: Milestone Outputs

• Prototype Demonstration: A functional prototype showcasing the key features and workflows of the tokenized bond platform on Cardano.
• Lifecycle Management Operations: TALM system manages bond lifecycles effectively, from issuance to redemption, without critical bugs.

B: Acceptance Criteria

• Lifecycle Management Operations: TALM system manages bond lifecycles effectively, from issuance to redemption, without critical bugs.
• Successful Prototype Demo: The prototype successfully demonstrates all key features, receiving positive feedback from internal testing and select stakeholders.

C: Evidence of Milestone Completion

• TALM System Documentation: Detailed documentation of the TALM system’s architecture and functionality.
• Prototype Demonstration Recording: Video recording or live demo session proofing the prototype’s capabilities.

A: Milestone Outputs

• Final project completion and closure report, documenting all phases of the project, key achievements, lessons learned, and KPIs.
• A development roadmap that sets clear milestones for further development, testing, and launch.

B: Acceptance Criteria

• Comprehensive documentation of project completion, including achievements and lessons learned.
• A clear and actionable development roadmap.

C: Evidence of Milestone Completion

• A final project closure report and video, including documentation of KPIs and achievements.
• A detailed development roadmap on Cardano Blockchain.

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

Rahul Konudula, CEO - Trivolve

He has founded companies across real estate, international commodities, and mineral mining that have been running successfully for more than a decade with 8 figure annual revenue in USD. He has over eight years of experience in the RWA sector, focusing on bringing innovative solutions by integrating AI and Blockchain and consistently being one of the leading contributors to industry advancements in South India.

Trivolve Tech 

We are a prominent AI and Blockchain development studio based in Dubai and India, specializing in creating innovative solutions for the Asia-Pacific region. With a dedicated team of 31 professionals, we have been serving over 20 enterprise clients, including governments, venture capital firms, and Fortune 500 companies, for more than three years. Our expertise extends to consulting for leading Cardano projects, leveraging our extensive experience in product development.

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

Milestone 1: Idea Validation and Market Research

• Cost: 25,000 ADA
• Project Manager: 5,000 ADA
• Market Researcher: 8,000 ADA
• Data Analyst: 7,000 ADA
• Technical Writer: 5,000 ADA

Milestone 2: Concept Development and Design

• Cost: 30,000 ADA
• Project Manager: 6,000 ADA
• UI/UX Designer: 10,000 ADA
• Cardano Solution Architect: 8,000 ADA
• Front-End Developer: 6,000 ADA

Milestone 3: Technical Feasibility and Prototyping

• Cost: 45,000 ADA
• Project Manager: 10,000 ADA
• Cardano Solution Architect: 25,000 ADA
• Senior Fullstack Developer: 10,000 ADA

Final Milestone: Platform Deployment and Launch

• Cost: 20,000 ADA
• Personnel:
• Project Manager: 8,000 ADA
• Cardano Solution Architect: 12,000 ADA

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

Our framework brings immense value to the Cardano ecosystem by transforming traditional government bond issuance into a secure, transparent blockchain-based process. By lowering entry barriers, it democratizes access to public finance and accelerates real-world asset tokenization on Cardano, attracting more governments, investors, and developers to the ecosystem.

We utilize a lean development methodology, emphasizing the prioritization of development and enhancements based on feedback from partners, the community, and users, which ensures efficient and cost-effective use of resources. Our strategic employment of a geographically diverse team spanning the US, Singapore, and India allows us to optimize development costs while upholding high quality and efficiency standards.

This method, along with our dedication to transparency and strategic financial planning, guarantees that the proposal delivers great value for money.