Cardano SMS Wallet Standard for Remote Regions with UNDP

[Proposal setup] Proposal title

Please provide your proposal title

Cardano SMS Wallet Standard for Remote Regions with UNDP

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

135000

[Proposal Summary] Time

Please specify how many months you expect your project to last

6

[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?

Current web3 wallet implementations ignore 2.6 billion offline people, mostly in rural or underserved areas, and 600 million feature phone users perpetuating global economic inequality.

[Proposal Summary] Supporting Documentation

Supporting links

• https://docs.google.com/presentation/d/15hjwXZxilB-apn4RQHFuxZVe2jrLcXDVki1nLiKAPMk/edit?usp=sharing
,
• https://github.com/xcapit/offline-wallet-cardano

[Proposal Summary] Project Dependencies

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

Yes

Describe any dependencies or write 'No dependencies'

SMS Service Provider & Off-ramp Partner

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

Please provide details on the intellectual property (IP) status of your project outputs, including whether they will be released as open source or retained under another licence.

License & Additional Information This project is licensed under the GNU Affero General Public License v3.0 https://gitlab.com/xcapit-foss/app/-/blob/e5c8680dac6db148e6b3f8094c896d2cf864e7b5/LICENSE

[Theme Selection] Theme

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

Wallet

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).

Our solution demonstrates decentralized blockchain potential for offline, inclusive finance at scale. We're pioneering a breakthrough use case that extends cryptocurrency access to previously unreachable communities.

By combining offline usability with blockchain-based tokenization, it empowers communities to access, track, and transact with digital assets safely, while promoting financial inclusion and ecosystem adoption in regions with limited connectivity.

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

The MVP will showcase our SMS-enabled, offline wallet in a real-world pilot with an NGO and beneficiaries. It demonstrates account setup via SMS, fund transfers, sponsored accounts, and simple account management. A partner portal highlights automated fund distribution through smart contracts, dashboards for traceability, and claimable balances. The pilot will also test frictionless merchant payments, confirming transactions via SMS without apps, credit, or internet access.

Existing partnerships secured for SMS services and regional off-ramps: Kotani Pay and UNDP.

The open-source project will be available on a dedicated GitHub page.

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

Adoption & Usage

• Existing partner UNDP validating our solution
• NGOs: 1 partner NGO piloting on Cardano in a key market; potential UN pilot in Q1-Q2 2026.
• End-users Onboarding: 1–5K.

Performance Metrics

• Transaction Speed: Fast, efficient Cardano processing with smart contract customization.
• Transaction Cost: SMS + transaction fees remain in line with previous pilots.
• Clawbacks: Smart contract flexibility minimizes clawbacks.
• Pilot Success: Results consistent with prior pilots.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

SMS-Enabled Blockchain Wallet

We’re breaking down digital barriers for financial inclusion with our open-source, DPG-certifiable offline blockchain wallet. A non-custodial solution that empowers humanitarian organizations and governments to deliver financial aid securely, instantly, and transparentlyWe're bridging the digital divide for financial inclusion with our open-source, DPG-certifiable offline blockchain wallet. This non-custodial solution empowers humanitarian organizations and governments to deliver financial aid securely, instantly, and transparently even in areas without internet, smartphones, or banking infrastructure.

Offline Wallet Capabilities:

• Account Abstraction: Beneficiary account setup via SMS and in bulk.
• Payment System: Internet-free funds transfer; no SMS credit needed.
• Sponsored Accounts: Seamless asset reception with NGO-funded account setup.
• Account Management: Simple SMS-based fund and account balance checking
• Customization: Tailored smart contract capabilities based on NGO requirements

Enterprise-Grade Fund Management Made Simple

Partner Portal: Smart contract automation handles secure fund distribution while maintaining an intuitive interface that requires no blockchain expertise.

Managed Services for Partners:

• Customization: Localization features and smart contract-based capabilities for custom requirements
• Onboarding: Streamlined onboarding and efficient cash disbursement
• Dashboard: Tools for funds traceability and management
• Clawback and/ or Claimable Balances Functionality: Asset recovery for enhanced control

Frictionless Merchant Payment Integration

Integrated Payment Infrastructure: Native off-ramp solutions that make digital asset transactions simple, with complete transparency and audit trails for partners.

SMS Payment Flow: Merchants start transactions, customers respond via SMS. No apps to download, no technical knowledge, no credit required, no complexity to learn—just confirm and pay.

Merchant Services Capabilities:

• Reverse Payment Functionality: The merchant initiates the payment process, and the user confirms the transaction amount, simplifying blockchain transactions for users with no knowledge of digital asset transactions
• Secure Transactions: Reliable, real-time account balances and low-cost transfers

[Your Project and Solution] Impact

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

Pioneering Financial Inclusion through:

Enhanced UX & Accessibility: Expands access to digital assets for underserved populations through a low-tech, offline solution.

Lower Technical Barriers for increased adoption: Simplifies onboarding for users and organizations with limited technological infrastructure.

Cost-Effective Transactions: Enables secure, low-cost transactions for NGOs, governments, and merchants.

Enhanced Network Adoption: Drives broader adoption of Cardano, particularly in regions such as LATAM.

Fosters Ecosystem Growth: Accelerates Cardano’s growth by reaching new users and use cases, while providing a critical low-tech solution for existing partners.

DPG on Cardano: Digital Public Good on Cardano, pending third-party certification.

[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?

Our team at Xcapit has delivered proven blockchain solutions including a UNICEF-backed EVM-compatible web3 wallet <https://www.unicef.org/innovation/stories/investing-blockchain-web3-and-ai-social-impact>, and a tokenization platform bridging traditional and digital assets in Argentina, demonstrating our capability to deliver complex blockchain solutions at scale. With our track record, we bring the technical expertise necessary to execute on Cardano. Validation will occur through iterative prototyping, collaborative pilots with humanitarian aid organizations, and direct engagement with the Cardano ecosystem.

UNDP Partnership

Collaborating with UNDP to validate the solution and demonstrate real-world impact across the Cardano ecosystem and partners.

Notable mentions

Highlights include our feature in Stanford Social Innovation Review (“Working Toward Financial Inclusion With Blockchain”) and our recognition by MIT Solve (“Efficient and Secure Borderless Humanitarian Aid by Xcapit”).

Proven Market Validation

Our EVM-compatible wallet achieved 100% transaction success rates during pilot deployment in Cusco, Peru, demonstrating zero technical barriers for offline users in underserved communities. Building on this success, we're launching our next UNICEF-partnered pilot in Ghana this September.

[Milestones] Project Milestones

Milestone Title

Core SMS-enabled wallet creation prototype

Milestone Outputs

• Development of SMS-enabled wallet prototype.
• Core SMS-enabled wallet infrastructure (Component Wallet Create) deployed to staging environment.
• End-to-end smoke path executed on staging successfully.
• Unit and integration tests completed.

Acceptance Criteria

• SMS-enabled wallet prototype successfully completed with core features implemented
• Backend infrastructure fully deployed and accessible in the staging environment
• Smoke run validates the entire end-to-end path functioning correctly in staging
• More than ten automated tests are currently passing
• All tests are properly documented and organized for future development and maintenance

Evidence of Completion

• Staging API URL + Merge request on github tag v1.0 is public
• Demo video of smoke in staging
• Test coverage report (PDF)

Delivery Month

1

Cost

35500

Progress

20 %

Milestone Title

Core SMS-enabled smart contract testnet prototype

Milestone Outputs

• Smart contract ‘Shelter’ in Aiken
• Core SMS-enabled wallet infrastructure (Component AID and ORDERS) deployed to the staging environment.
• End-to-end smoke path executed in staging, interacting with testnet smart contract.
• Unit/ integration tests completed

Acceptance Criteria

• Smart contract created and built.
• Core backend infrastructure (AID, ORDERS) created and accessible in staging. Successfully interacting with the testnet blockchain.
• Smoke test demonstrates the complete flow in staging (using testnet for blockchain operations).
• ≥10 tests passing and documented

Evidence of Completion

• Address smart contract compile(testnet) + Merge request on github tag v2.0 is public.
• Merge request on github tag v2.0 is public
• Explorer links(testnet) + Demo video of smoke
• Test coverage report (PDF)

Delivery Month

3

Cost

45000

Progress

50 %

Milestone Title

Merchant Payment Management Platform

Milestone Outputs

• Merchant Management Platform – Component ORDERS
• ADMIN/ NGO Management Platform – Component AID and END USERS
• End-to-end smoke path executed in staging, interacting with testnet smart contract.
• Unit/ integration tests completed

Acceptance Criteria

• Merchant platform fully created and operational
• ADMIN/NGO platform developed with core functionality enabled
• Smoke test confirms the complete end-to-end flow in staging, including testnet-based blockchain operations
• More than ten tests are now passing successfully

Evidence of Completion

• Staging URL + Merge request on github tag v3.0 is public
• Staging URLs + Merge request on github tag v3.0 is public
• Explorer links(testnet) + Demo video of smoke
• Test coverage report (PDF)

Delivery Month

4

Cost

22000

Progress

70 %

Milestone Title

Mainnet Launch

Milestone Outputs

• Deployment of the Core SMS-enabled infrastructure to production
• Deployment of the Merchant Management Platform and ADMIN/NGO Platform to production
• Smart contract ‘Shelter’ in Aiken
• End-to-end smoke path executed in production, interacting with mainnet smart contract

Acceptance Criteria

• Core backend infrastructure (Wallet, AID, ORDERS) accessible in production and interacting correctly with mainnet
• Both platforms (Merchant + ADMIN/NGO) are accessible in production and consuming mainnet endpoints
• Smart contract built
• Smoke test demonstrates the complete flow in production (using mainnet for blockchain operations)

Evidence of Completion

• Production URL.
• Production URLs for Merchant Platform and ADMIN/NGO Platform.
• Address smart contract compile(mainnet)
• Explorer links(mainnet) + Demo video of smoke

Delivery Month

5

Cost

16500

Progress

90 %

Milestone Title

Controlled Pilot and Public Report

Milestone Outputs

• Control pilot executed successfully, accompanied by a detailed public report summarizing results and insights
• End users were fully onboarded and activated during the pilot phase
• AID credentials were generated and assigned throughout the pilot
• Comprehensive security audit completed, addressing all critical and high-priority items
• Final closeout video produced to document outcomes and provide a clear project wrap-up

Acceptance Criteria

• Pilot completed
• End users activated in the pilot period
• AID assigned during the pilot on mainnet
• Security audit report delivered
• Final closeout video is publicly available and accepted by Cardano Reviewers

Evidence of Completion

• Pilot documented and shared with the Cardano community
• Whitelist end users
• Explorer links to transactions
• Security audit report (PDF)
• Link to final closeout video and acceptance

Delivery Month

6

Cost

16000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Total Budget: ₳135,000

Time: 6 Months

Milestone # 1: Infrastructure & Midnight Data Ingestion | 35,500 ADA | 1 Month Development | Completion 20%

Core SMS-enabled wallet infrastructure (Component Wallet Create) deployed to staging environment.

End-to-end smoke path executed on staging.

Unit/ integration tests

Milestone # 2: Core SMS-enabled smart contract testnet prototype | 45,000 ADA | 2 Months Development | Completion 50%

• Smart contract ‘Shelter’ in Aiken
• Core SMS-enabled wallet infrastructure (Component AID and ORDERS) deployed to the staging environment.
• End-to-end smoke path executed in staging, interacting with testnet smart contract.
• Unit/ integration tests

Milestone # 3: Merchant Payment Management Platform | 22,000 ADA | 1 Month Development | Completion 70%

• Merchant Management Platform – Component ORDERS
• ADMIN/NGO Management Platform – Component AID and END USERS
• End-to-end smoke path executed in staging, interacting with testnet smart contract.
• Unit/ integration tests

Milestone #4: Mainnet Launch | 16,500 ADA | 1 Month Development | Completion 90%

• Deployment of the Core SMS-enabled infrastructure to production.
• Deployment of the Merchant Management Platform and ADMIN/NGO Platform to production.
• Smart contract ‘Shelter’ in Aiken.
• End-to-end smoke path executed in production, interacting with mainnet smart contract.

Milestone #5: Controlled Pilot and Public Report | 16,000 ADA | 1 Month | Completion 100%

*with the cost of various deliverables included in prior milestones

• Pilot documented and shared with the Cardano community
• Whitelisted end users
• Explorer links to transactions
• Security audit report (PDF)
• Demo video and blog published for ecosystem engagement
• Marketing & Partnership Coordination
• Video showcasing project completion accepted
• Management overhead and ongoing operational costs are absorbed by Xcapit and not included in this budget, demonstrating our long-term commitment to the Cardano ecosystem.

[Final Pitch] Value for Money

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

Xcapit's project delivers exceptional value by creating open-source infrastructure that extends Cardano's reach to 2.6 billion offline users, driving significant on-chain activity through humanitarian aid disbursement and merchant payments. The solution also enables new use cases such as climate resilience and anticipatory action. Strategic partnerships within the broader Cardano ecosystem, along with the potential to collaborate with the Cardano Foundation and UNDP, position this project to deliver impact far beyond the initial investment:

Open-Source Community: Active Cardano ecosystem partnerships will expand our open-source offline wallet's capabilities and integration points through collaborative development and community contributions.

Strategic Integrations: Exploring Veridian <https://cardanofoundation.org/veridian> integration for decentralized identity solutions, removing traditional KYC barriers in humanitarian contexts where identity verification is challenging.

Foundation Partnership: Leveraging Cardano Foundation's UNDP accelerator partnership to scale humanitarian impact and align with sustainable development objectives.

[Self-Assessment] Self-Assessment Checklist

I confirm that evidence of prior research, whitepaper, design, or proof-of-concept is provided.

Yes

I confirm that the proposal includes ecosystem research and uses the findings to either (a) justify its uniqueness over existing solutions or (b) demonstrate the value of its novel approach.

Yes

I confirm that the proposal demonstrates technical capability via verifiable in-house talent or a confirmed development partner (GitHub, LinkedIn, portfolio, etc.)

Yes

I confirm that the proposer and all team members are in good standing with prior Catalyst projects.

Yes

I confirm that the proposal clearly defines the problem and the value of the on-chain utility.

Yes

I confirm that the primary goal of the proposal is a working prototype deployed on at least a Cardano testnet.

Yes

I confirm that the proposal outlines a credible and clear technical plan and architecture.

Yes

I confirm that the budget and timeline (≤ 12 months) are realistic for the proposed work.

Yes

I confirm that the proposal includes a community engagement and feedback plan to amplify prototype adoption with the Cardano ecosystem.

Yes

I confirm that the budget is for future development only; excludes retroactive funding, incentives, giveaways, re-granting, or sub-treasuries.

Yes

[Required Acknowledgements] Consent & Confirmation

I Agree

Yes