Kima: Interoperability Layer for Cardano Ecosystem

[Proposal setup] Proposal title

Please provide your proposal title

Kima: Interoperability Layer for Cardano Ecosystem

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

100000

[Proposal Summary] Time

Please specify how many months you expect your project to last

3

[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?

Cardano lacks seamless interoperability with external chains and traditional finance, limiting liquidity, use cases and adoption across its stablecoin and app ecosystem.

[Proposal Summary] Supporting Documentation

Supporting links

• https://kima.network
,
• https://kima-2.gitbook.io/tech-paper-1/
,
• https://kima-2.gitbook.io/kima-whitepaper-1/

[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?

No

License and Additional Information

Currently not open source. Will be oened in the next months

[Theme Selection] Theme

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

Infrastructure

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).

While other interoperability efforts for Cardano have primarily focused on bridges, wrapping assets, or middleware orchestration layers, Kima’s approach is fundamentally different:

• No Bridges or Custodians
• Direct Banking System Integration
• Compliance at the Settlement Layer
• Proven, Production-Ready Mode

This is not an upgrade to existing interoperability tools. It’s the introduction of infrastructure-grade, compliant, and bank-connected settlement to the Cardano ecosystem, something no previously funded project has delivered.

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

The Cardano adapter prototype will run in two environments: Kima Testnet (integrated with Cardano testnet nodes) and Cardano Testnet (with a funded pool address). Developers can use the Kima SDK to perform cross-chain settlements with Cardano test assets and other testnets. Public access via Kima’s portal/GitHub, full docs, demo video, and open community testing. All transactions are on-chain for transparency.

Describe realistic measures of success, ideally with on-chain metrics.

Our success metrics focus on adoption, usage, and liquidity, all verifiable on-chain: $5M+ settlement volume in 6 months, ≥2 stablecoins and 2 wallets integrated, 1,000+ cross-chain transactions in 3 months, $2M+ liquidity connected in year one, and active dApps/wallets using the Cardano adapter. Monthly public reports will track adoption and performance via Cardano and Kima explorers.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Kima is a universal, decentralized settlement layer that enables atomic, compliant transactions across blockchains and regulated banking systems without bridges, custodians, or smart contracts. Already live with integrations to Ethereum, Solana, Arbitrum, Polygon, and multiple central bank and enterprise pilots, Kima powers stablecoin payments, Delivery vs Payment (DvP), and multi-chain treasury flows with sub–10 second finality. By connecting Cardano to Kima, the ecosystem gains direct access to global liquidity, institutional-grade compliance, and seamless interoperability with other chains and fiat rails.

We propose building a Cardano adapter that connects the Cardano blockchain to Kima’s universal settlement network - a decentralized, compliance-first settlement layer that enables atomic, cross-ecosystem, and cross-bank transactions without reliance on bridges, custodians, or smart contracts. Kima is already integrated with multiple blockchains and regulated banking systems, facilitating stablecoin payments, Delivery vs Payment (DvP), and fiat on/off-ramps. It is live in production, used in two central bank pilots (including the ECB’s Digital Euro) and trusted by enterprise partners including Mastercard. This proven, infrastructure-grade solution will bring Cardano instant access to global liquidity, institutional-grade compliance, and seamless interoperability with the wider digital asset ecosystem.

This adapter will allow Cardano-based apps, wallets and stablecoins to:

• Interoperate natively with other blockchains and traditional financial systems like banks and enterprise treasuries (as mentioned above - ECB's digital Euro, Mastercard, and more).
• Interoperate natively with other blockchains, regulated banking networks, and enterprise treasury systems – Cardano assets and applications will be able to participate in atomic, real-time settlement flows that span multiple chains and connect directly to bank accounts, payment networks, and corporate cash management systems. This means a Cardano stablecoin could be used to pay a supplier on Ethereum, receive funds from a Solana DeFi platform, or settle an invoice via fiat rails (like SWIFT, SEPA or Visa/Mastercard) - all without wrapping assets, using custodians, or relying on risky intermediaries.
• Settle with atomic finality and built-in compliance at the protocol level instead of the app level.
• Access external liquidity without asset-wrapping bridges, smart contracts or custodial risk.

This infrastructure-grade integration will enable Cardano to participate in bank-grade settlement flows such as institutional payments, compliant DeFi, and fiat/stablecoin treasury operations, while preserving decentralization. Kima has already delivered production adapters for Ethereum, Solana, Arbitrum, Polygon, and multiple regulated banking APIs. These integrations have enabled:

• Atomic settlement across ecosystems with zero bridge or custodial risk, facilitating millions of dollars in cross-chain stablecoin transfers.
• Integration into central banks and Mastercard’s sandboxes to demonstrate regulated on/off-ramp flows and programmable compliance at the settlement layer.
• Enterprise-grade payment use cases, such as Delivery vs Payment (DvP) and real-time FX conversion between stablecoins, reducing operational costs by up to 40% for partners compared to legacy settlement rails.
• Sub–10 second settlement finality in multi-chain flows, proven in live pilots with institutional participants.

The same proven model will now be extended to Cardano, unlocking liquidity from other ecosystems and enabling its stablecoins, wallets, and dApps to operate seamlessly in global, regulated financial environments.

Potential users of our solution could be:

L2s:

• Sundial Protocol – Leveraging Kima to link Sundial L2 with other blockchains - starting with Cardano and Bitcoin, followed by Solana, Ethereum, and more. This enables seamless liquidity transfers and settlements across multiple networks.

Stable coins:

• USDA (EMURGO) - Use Kima to enable atomic mint/redemption of USDA across multiple chains and fiat rails, letting USDA flow into Ethereum, Solana, and banking systems without bridges. This expands USDA demand beyond Cardano and boosts on/off-ramp utility.
• USDM (Mehen) - Integrate Kima to settle USDM payments directly into bank accounts or other stablecoins in real-time, supporting multi-chain commerce and compliant treasury operations.

Wallets:

• Vespr - Offer users direct cross-chain swaps and payments from Cardano assets into other chains or fiat accounts, all within the wallet interface, without relying on third-party custodians.
• Yoroi - Add Kima as a backend for secure, compliant cross-chain stablecoin transfers and fiat settlements, enabling Yoroi to serve enterprise and institutional users.
• Begin - Enable instant payments between Begin wallet users and external ecosystems, allowing cross-chain DeFi participation without asset wrapping.
• Gero - Integrate Kima for treasury management tools that connect Cardano-native assets to bank-grade rails and liquidity pools across chains.
• Lace (IOG) - Use Kima to provide a one-click, compliant off-ramp to fiat or other stablecoins, giving Lace a regulated global payments capability.

Tools:

• MeshJS - Leverage Kima’s SDK to add compliant, cross-chain settlement capabilities to dApps built with MeshJS, reducing complexity for developers.
• ZKFold - Integrate Kima to allow ZK-based apps to settle value atomically across chains and into fiat, preserving privacy while ensuring regulatory compliance.

[Your Project and Solution] Impact

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

• Increased liquidity: Enables Cardano apps and stablecoins tap into liquidity from Ethereum, Solana, traditional rails and more. The Cardano adapter will enable native access to external liquidity from ecosystems like Ethereum and Solana, as well as from traditional financial networks via Kima’s banking integrations. For example, a Cardano-based stablecoin could be used in a payment flow that begins on Ethereum and settles on Cardano—without wrapping or bridges—unlocking demand from users and capital outside the Cardano ecosystem. This also supports stablecoin minting and redemption with fiat on/off-ramps, enhancing real-world usability.
• New use cases: Cardano apps will be able to serve users and assets from other ecosystems, expanding their reach and enabling new business models, such as cross-chain commerce, compliant DeFi, or multi-chain treasury management.
• Compliance Alignment: By enforcing compliance rules at the settlement layer (e.g. KYT), Kima makes it easier for institutional players to adopt and transact on Cardano without needing custom smart contracts or middleware.
• Measurement: We’ll track transaction volumes, integration partners, and usage metrics post-deployment. Outcomes will be published monthly and via an impact report.

[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?

Kima is already live with production integrations in Web3 ecosystems, central bank pilots (Digital Euro, Bank of Israel), and enterprise partners. We have delivered multiple chain adapters (EVM and non-EMV), including Ethereum, Solana, Arbitrum, and Polygon, enabling these ecosystems to connect directly to Kima’s settlement layer for atomic cross-chain stablecoin transfers, Delivery vs Payment (DvP) flows, and fiat on/off-ramp integrations. For example, our Ethereum adapter powers stablecoin settlement between ERC-20 assets and bank accounts without custodians; our Solana adapter enables high-speed FX conversion into fiat rails; and our Arbitrum integration supports compliant multi-chain treasury management for institutional users.

We also hold two pending patents for our settlement infrastructure.

The Cardano adapter will follow the same proven architecture used in past integrations. We’ll validate feasibility through early integration pilots with Cardano-based apps and stablecoin projects, several of which we’re already in contact with. In addition, we plan to collaborate with established ecosystem teams such as TxPipe (infrastructure), MeshJS (tooling), and AiQuant (application layer) under the Sundial umbrella to ensure alignment with Cardano best practices and accelerate development and adoption.

[Milestones] Project Milestones

Milestone Title

Research & Design

Milestone Outputs

• Integration specification document covering Cardano node/RPC requirements, SDK modifications, and data flow diagrams. - Selection of primary Cardano stablecoin(s) for pilot (e.g., USDA or USDM) with partner commitment letters if available. - Address derivation plan from Kima’s Threshold Signature Scheme (TSS) keys. - Define the requirements for transaction signing - Define finality requirements on Cardano
• Draft interface definitions for interacting with Cardano RPCs and APIs
• Selecting a Cardano wallet to integrate with

Acceptance Criteria

• The technical specifications are made publicly accessible, either through a dedicated GitHub repository or a shared Notion workspace.
• These specifications are subsequently reviewed and validated in collaboration with one or two Cardano application or infrastructure teams—for example, through engagement with Sundial, TxPipe, MeshJS, or similar ecosystem contributors.

Evidence of Completion

Detailed specifications are made publicly accessible, either through a dedicated Git repository or via a shared Notion workspace, ensuring open and transparent access for all relevant stakeholders.

Delivery Month

1

Cost

20000

Progress

20 %

Milestone Title

Development & Internal Testing

Milestone Outputs

• Cardano wallet integrated into Kima SDK
• Successful Cardano address derivation from TSS key.
• Kima will have either an EOA with said address, or smart contract deployed by address as pool
• Test stablecoin (USDK or equivalent) deployed to Cardano testnet for simulation.
• Adapter logic for sending/receiving assets between Cardano pool and other chains.

Acceptance Criteria

• Cardano Testnet integrated as an available chain on Kima Testnet - Wallet available in SDK - Wallet can transfer funds to pool - User journey completed
• USDK test token deployed to Cardano

Evidence of Completion

• A publicly accessible testnet demonstration showcasing Cardano support is now available through an open URL for anyone to explore and interact with.
• Additionally, a dedicated SDK branch with full Cardano integration is available on the SDK GitHub repository, providing developers with the resources needed to test, build, and integrate using Cardano capabilities.

Delivery Month

2

Cost

40000

Progress

60 %

Milestone Title

Production integration

Milestone Outputs

• Full deployment of the liquidity pool to the Cardano Mainnet environment, making it publicly accessible and operational.
• Successful integration of the Cardano interaction logic with the Kima Mainnet infrastructure, enabling seamless on-chain communication.
• Live testing and validation of the Cardano wallet connection and Software Development Kit (SDK) integration to ensure compatibility and stable performance.

Acceptance Criteria

• End-to-end demonstration of mainnet settlement: A Cardano-based asset is successfully transferred to an external blockchain, such as exchanging it for an Ethereum-based stablecoin and the reverse transaction is also executed.
• All transactions underwent and passed full compliance verification, with every test case meeting the required standards.

Evidence of Completion

• Cardano support has been fully integrated into the main branch of the SDK, enabling client applications to seamlessly connect with and utilize the Cardano ecosystem.
• This integration provides direct access to Cardano’s blockchain infrastructure and native token functionality, allowing developers to build, transact, and interact with the network’s features directly through the SDK.

Delivery Month

3

Cost

20000

Progress

80 %

Milestone Title

Public Launch & Reporting

Milestone Outputs

• Comprehensive documentation designed for developers, providing step-by-step integration guides, detailed API references, and best practices to ensure smooth implementation.
• Additionally, a publicly accessible demonstration video is available, showcasing the process of executing a cross-chain settlement with Cardano in a clear and practical example.

Acceptance Criteria

• The adapter, along with comprehensive technical documentation, is accessible either via our public GitHub repository or through a dedicated public endpoint.
• In addition, we publish detailed usage metrics on a monthly basis, covering key indicators such as transaction volumes, number of integrations, and total liquidity moved across the network.

Evidence of Completion

• Comprehensive documentation, including technical guides, integration instructions, and reference materials.
• Demonstration video showcasing the product’s functionality, features, and real-world use cases.
• Marketing assets, such as brochures, pitch decks, visuals, and other promotional content.

Delivery Month

3

Cost

20000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

1. Developer salaries (x2 devs)

ADA 50,000

3 months dev work, including smart contract & chain integration

1. Product & Delivery

ADA 10,000

PM, milestone tracking, and overall delivery coordination

1. Compliance review

ADA 10,000

Legal and regulatory validation, including KYC/KYT integration

1. Testing & QA

ADA 10,000

Partner testing, stress testing, and bug fixing

1. Community engagement

ADA 10,000

Documentation, demo videos, events

1. Operations/Support

ADA 10,000

Reporting, updates, stakeholder coordination

Total: ADA 100,000

[Final Pitch] Value for Money

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

This proposal brings a critical piece of infrastructure to the Cardano ecosystem: seamless, atomic interoperability. For a modest budget, it enables Cardano to access liquidity and use cases across other blockchains and regulated fiat rails—a strategic investment that benefits every Cardano app, wallet, and stablecoin project.

By leveraging Kima’s proven settlement architecture, the Cardano ecosystem gains instant access to global liquidity, institutional-grade compliance, and new real-world use cases without the need for each project to build costly custom integrations.

Our costs are aligned with market rates for specialized blockchain development and compliance consulting. Most of the funds go directly to technical execution and delivery, ensuring maximum return on investment for the community.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes