TradFi MidnightZK SDK – Bridge Banking to Cardano DeFi

[Proposal setup] Proposal title

Please provide your proposal title

TradFi MidnightZK SDK – Bridge Banking to Cardano DeFi

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

90000

[Proposal Summary] Time

Please specify how many months you expect your project to last

4

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

TradFi liquidity & data are locked in legacy systems and cannot be used trustlessly in Cardano dApps without exposing sensitive info or relying on intermediaries, limiting real-world Web3 integration.

[Proposal Summary] Supporting Documentation

Supporting links

• https://trivolvetech.com/

[Proposal Summary] Project Dependencies

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

No

Describe any dependencies or write 'No dependencies'

No dependencies

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

License and Additional Information

MIT License

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal

Infrastructure

[Campaign Category] Category Questions

Mention your open source license and describe your open source license rationale.

We will release all code under the MIT License. This highly permissive license allows anyone to freely use, modify, and distribute the code, including for commercial purposes, provided attribution is given. MIT was chosen to maximise adoption, reduce legal friction, and encourage ecosystem contributions from both individuals and enterprises. Its simplicity and wide recognition ensure developers can integrate our SDK quickly without legal complexity, accelerating innovation and community growth around trustless TradFi↔DeFi integration.

How do you make sure your source code is accessible to the public from project start, and people are informed?

All repositories will be public from the first project commit on GitHub, licensed under MIT. Development will occur transparently with an open issue tracker, public milestones, and continuous integration builds visible to all. Developers and stakeholders can track progress in real time and contribute from day one.

How will you provide high quality documentation?

We will maintain comprehensive, developer-focused documentation hosted alongside the code in the GitHub repository and on a dedicated docs site. This will include installation guides, API references, code examples, architecture diagrams, and step-by-step integration tutorials. Documentation will be versioned with the code & updated continuously as features evolve.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

We propose an open-source ZK TradFi SDK that lets Cardano smart contracts trust facts about bank/payments data without ever seeing the raw data. The SDK pulls data from traditional financial backends (banking and payment APIs), generates zero-knowledge proofs (ZKPs) about that data using Midnight ZK proofs, and exposes on-chain verifier contracts that validate those proofs. DApps can then act on verified statements (e.g., “a wire cleared,” “balance ≥ X,” “KYC attribute = true”) while preserving privacy and removing intermediaries.

What the SDK includes

Connector Library (off-chain): Open-source adapters for common banking/payment APIs. Connectors normalize responses into a canonical schema and sign them locally.

ZK Proof Engine (off-chain) that:

• Ingests normalized TradFi data
• Checks policy predicates
• Produces a succinct proof that “the predicate is true given valid input,” without leaking the input
• Submits proof artifacts to Cardano
• Publishes proof hashes and metadata for auditability

Developer SDKs: TypeScript client libraries to:

• Build predicates
• Generate/verify proofs locally for testing
• Interact with the relay and verifiers
• Compose L1 flows for instant settlement after proof acceptance

How it works (flow)

Fetch & Normalize: Connector retrieves data from a bank/payment API using user-granted credentials. Data is normalized and signed locally.

Prove: A Midnight ZK program checks a developer-defined predicate. If true, it outputs a ZK proof and a compact public statement.

Submit: The relay (or the dApp directly) posts the proof + public statement to Cardano and calls the appropriate verifier.

Verify & Act: The contract verifies the proof. If valid, it triggers on-chain logic: release escrow, mint/burn/update a state token, unlock access, or start a flow for instant payouts.


Privacy & security model

Data minimization: Only a predicate result (true/false + minimal context) becomes public. Raw bank data never leaves the user’s trust boundary unencrypted.

Verifiable computation: Midnight ZK ensures that the statement derived from private inputs is correct, without exposing those inputs.

Separation of concerns: Connectors, proof apps, and verifiers are modular. Institutions can run their own connectors; merchants can self-host the relay.

Example use cases

Programmable money: Release ADA from escrow only when a corresponding fiat settlement is proven by a bank API.

Fiat↔Crypto triggers: Auto-mint a stable CNT when proof shows a fiat credit has landed; or burn upon proof of fiat redemption.

Risk controls: Allow treasury transfers when a proof confirms liquidity (balance ≥ threshold).

Engineering plan

Midnight ZK proof apps: Open-source circuits for payment status, balance checks, attribute attestations.

Connector packs: At least two open banking/payment connectors at launch; clear interfaces for community-built connectors.

SDKs & samples: TS SDKs, end-to-end examples (escrow, access token gating, attribute proof minting), and quickstarts.

Why this solves the problem

By moving trust from institutions and middlemen to cryptographic proofs, Cardano dApps can safely act on real-world financial events and identity attributes without leaking data or ceding custody. This unlocks programmable finance and fiat-aware automation, critical capabilities for mainstream Web3 adoption.

[Your Project and Solution] Impact

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

The proposed ZK TradFi SDK will have a transformative impact on the Cardano ecosystem by providing the missing bridge between traditional finance (TradFi) and decentralized finance (DeFi), while preserving privacy, ensuring trustlessness, and removing intermediaries.

Unlocking Real-World Programmable Finance

Cardano smart contracts will be able to respond directly to real-world financial events such as bank transfers, card payments, payroll deposits, and account balance changes, all verified by zero-knowledge proofs.

Expanding Cardano’s Developer Ecosystem

The SDK’s open-source nature under the MIT License ensures developers can freely integrate, adapt, and extend it. Potential downstream effects include:

Emergence of entirely new dApp categories (e.g., TradFi-aware lending, payroll-linked DAOs, insurance).

Faster onboarding of fintech companies into Cardano’s infrastructure.

Collaborative ecosystem growth via community-built API connectors and predicate templates.

Strengthening Cardano’s Position in the Global Web3 Landscape

By enabling real-world asset integration and compliance-compatible DeFi, Cardano gains competitive advantages:

Attracts institutional interest by bridging the gap between regulated TradFi and on-chain environments.

Showcases Cardano’s ability to be the privacy-respecting, compliance-capable blockchain of choice.

Demonstrating ZK Technology at Scale on Cardano

The project serves as a high-profile production use case for Midnight zero-knowledge proofs within Cardano, offering:

A blueprint for other developers to integrate ZKPs into their own contracts.

Proof that high-value financial workflows can be executed privately and trustlessly on Cardano.

Measurable Impact Indicators

We will track and publicly share:

• Number of live integrations (merchants, dApps, fintech platforms).
• Variety of use cases implemented using the SDK.
• Volume of proofs verified on-chain.
• Adoption in regulated pilots or institutional trials.

Long-Term Ecosystem Benefits

Once deployed, the SDK can be continuously expanded by the community to support more banks, payment networks, and proof types. This will create an ever-growing library of reusable financial predicates that power the next generation of Cardano dApps, all while keeping sensitive data off-chain and in user control.

In essence, this project positions Cardano as the go-to blockchain for secure, private, and programmable TradFi integration, accelerating its adoption in real-world, regulated, and enterprise contexts, while preserving decentralization and user sovereignty.

[Your Project and Solution] Capabilities & 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.
• Cardano-Midnight ZKBridge: This bridge enables Cardano’s assets to leverage Midnight advanced features for secure transactions for privacy focused usecases. This also allows two-way portability of assets.

[Milestones] Project Milestones

Milestone Title

Project Kickoff

Milestone Outputs

Establish project governance and development environment.

Set up public GitHub repository with MIT license and contribution guidelines.

Finalize API connector priorities and target banking/payment networks.

Acceptance Criteria

A public GitHub repository is created with an MIT license and contribution guidelines. The project scope, roadmap, and team details are announced across community channels. Initial API connector is fully documented with usage examples

Evidence of Completion

Public link to the GitHub repository with initial code and documentation. Published roadmap document available for community review. Community update post shared across official channels summarising progress and inviting contributions.

Delivery Month

1

Cost

20000

Progress

20 %

Milestone Title

Technical Design

Milestone Outputs

Complete architecture for ZK proof generation, relay service, and verifier contracts.

Define canonical schemas for TradFi data normalization.

Produce detailed technical specifications for Midnight ZK proof circuits.

Acceptance Criteria

Architecture diagrams are published and shared with the team. Detailed technical specification documents are written. The final design is assessed for compliance considerations, with any identified issues documented and addressed before proceeding to development.

Evidence of Completion

Link to public technical design documentation in the GitHub repository. Approved meeting notes from the architecture review session, including compliance feedback, are published for transparency.

Delivery Month

2

Cost

25000

Progress

50 %

Milestone Title

Development

Milestone Outputs

Implement initial Midnight ZK proof circuits for at least 2 use cases (e.g., payment settled, balance check).

Build verifier contracts for proof validation.

Develop middleware relay service for submitting and retrieving proofs.

Create TypeScript SDK bindings for developers.

Acceptance Criteria

End-to-end proof generation and verification successfully works in the Cardano testnet environment. Middleware reliably relays proofs between the connector and blockchain without errors. SDK examples execute as intended, demonstrating core functionality and integration readiness.

Evidence of Completion

Public GitHub code with README and test instructions.

Demo video of working proof verification in testnet.

Delivery Month

3

Cost

25000

Progress

90 %

Milestone Title

Launch & Project Close-Out

Milestone Outputs

Update final release to public github repo.

Publish complete developer documentation and tutorials.

Host final community demo and Q&A session.

Submit final project report & Final Project close out video.

Acceptance Criteria

Release is tagged and published in the public GitHub repository.

Final closeout report is publicly available.

Final closeout video is publicly available.

Documentation is comprehensive, providing clear guidance.

Evidence of Completion

Links to the open-source repos.

Digital copies of all comprehensive documentation.

Link to final closeout report.

Link to final closeout video.

Delivery Month

4

Cost

20000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Milestone 1 – Project Kickoff

Project Manager: 5,000 ADA

Senior ZK/Blockchain Developer: 10,000 ADA

Operational & Research Costs: 5,000 ADA

Total: 20,000 ADA

Milestone 2 – Technical Design

Project Manager: 8,000 ADA

Senior ZK/Blockchain Developer: 17,000 ADA

Total: 25,000 ADA

Milestone 3 – Development

Project Manager: 7,000 ADA

Senior ZK/Blockchain Developer: 18,000 ADA

Total: 25,000 ADA

Milestone 4 – Launch & Project Close-Out

Project Manager: 8,000 ADA

Senior ZK/Blockchain Developer: 12,000 ADA

Total: 20,000 ADA

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

1. High Impact

The project enables real-world programmable finance, allowing Cardano dApps to act on verified TradFi events without relying on centralized custodians or revealing sensitive data.

2. Reusable Open-Source Infrastructure

Released under the MIT License, the SDK, proof circuits, and verifier contracts will be freely available for any developer, business, or institution to adapt.

3. Enabling Entirely New Use Cases

Escrow automation tied to fiat settlement.

Privacy-preserving identity verification for compliance-ready DeFi.

4. Strengthening Cardano’s Competitive Position

Positions Cardano as a blockchain capable of privacy-respecting TradFi integration at a technical level rivaling or surpassing competitors.

Showcases Cardano as a platform for both consumer privacy and enterprise-grade compliance.

5. Measured, Accountable Delivery

Four clear milestones ensure incremental delivery, each producing tangible, testable outputs.

Public GitHub repository from project kickoff, ensuring transparency and continuous community oversight.

6. Long-Term Ecosystem ROI

Community developers can expand the proof library, add new API connectors, and adapt the SDK to emerging Cardano-native assets and protocols.

Institutions can integrate privately and securely, broadening Cardano’s adoption in regulated markets.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes