Last updated a month ago
Cardless stablecoin cash withdrawal needs two types of scale: global widely available access points, and adequate network throughput.
NBX and Moneta Digital will launch a commercially available cash-out service via the Flip App using the widely available Pin4 network. We will also prototype scaling solutions with Hydra L2.
Please provide your proposal title
USDM cash-out at network of ATM and Retail & Hydra prototype
Enter the amount of funding you are requesting in ADA
200000
Please specify how many months you expect your project to last
12
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Cardless stablecoin cash withdrawal needs two types of scale: global widely available access points, and adequate network throughput.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
Yes
Describe any dependencies or write 'No dependencies'
We depend on successfully deploying the cash-out feature through Pin4 and thus rely on their partnership. We also depend on successful technical integration of Hydra in our solution to demonstrate the scaling, and to demonstrate Hydra L2 is fit for purpose for a L2 solution for cash-out.
Will your project's outputs be fully open source?
No
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.
The project and its implementation will be the intellectual property of Norwegian Block Exchange.
Please choose the most relevant theme and tag related to the outcomes of your proposal
Financial Services
Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).
As far as NBX and Moneta Digital is aware in our initial research there is no current solution on the Cardano Blockchain that would have the extent of cash-out locations as what we are proposing in collaboration with Pin4. We also believe prototyping the usage of Hydra L2 technology for cash-out transactions at retail locations would be novel on the Cardano blockchain and would pave the way for near-instant cash out transfers and the scale needed for widescale commercial adoption.
This proposal delivers a commercial use case: allowing people to cash-out USDM through Pin4 at a top three global money transmitter and a top 3 US retailer. It connects Cardano to one of the largest retail networks in the world and shows how blockchain can replace slow, expensive, and outdated payment rails.
Prototyping Hydra gives us the path for further speed, low cost, and reliability needed for retail transactions of the scale where millions of people may eventually redeem stablecoins for cash and is an important prototyping step to further develop the product.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
Our MVP will have a commercial solution of cash-out of USDM into USD through our partner Pin4 that has a network of more than 500,000 ATM and retail store cash pick up locations globally. The solution will be accessible through the non-custodial app the Flip app. (https://www.theflip.app/)..) We will in addition prototype using Hydra L2 and demonstrate near instant settlements of cash-out with Hydra L2 as the initial settlement layer and document this on a cardano testnet.
Describe realistic measures of success, ideally with on-chain metrics.
We will demonstrate cash-out withdrawals of USDM to USD from retailers and ATM with the cardless solution of our partner Pin4 across locations both in the US and in Europe.
For the Hydra prototype demonstrating scale through a simulated 3000 daily cash-out withdrawals (equivalent of over 1 million a year) on a testnet, and a near instant settlement time would be considered a successful prototype.
Please describe your proposed solution and how it addresses the problem
NBX and Moneta Digital will solve the commercial problem of limited cash-out locations by partnering with Pin4, accessing their vast network of more than 500,000 ATM and retail store cash pick up locations globally. This cash-out capability will be deployed within our non-custodial app the Flip App. This immediately provides the wide adoption necessary for the USDM stablecoin cash-out to be a commercially viable product.
To overcome the limitations of the Cardano L1 that hinders mass adoption for cash-out services of transaction fees, slower speed and limits on scale, we at NBX and Moneta Digital are prototyping a cash-out service utilizing Hydra Layer 2 scaling technology. This prototype will pave the way for near-instant, low-cost settlement for users to redeem USDM stablecoins for cash.
Please define the positive impact your project will have on the wider Cardano community
This proposal integrates Cardano and its premier fiat-backed stablecoin (USDM) into the Pin4 network, providing more than 500,000 ATM and retail store cash pick up locations globally. This massive scale provides utility for high-impact use cases like consumer incentives, payroll, and remittances, including the ability to disburse cash for disaster or financial relief, serving both banked and unbanked populations. The integration with the Flip App allows for seamless peer-to-peer (P2P) USDM transfers, where the recipient can cash out via the Pin4 network. The Hydra prototyping will demonstrate the scale capabilities needed for widescale commercial adoption of such a cash-out solution.
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?
Norwegian Block Exchange (NBX) will be the main developer of this project with support from Moneta Digital the USDM issuer. NBX has in the past (F11) proposed a CNT marketplace that while not approved for a grant, we where able to deliver the solution. (https://projectcatalyst.io/funds/11/cardano-use-cases-product/create-a-cnt-marketplace-on-norwegian-block-exchange-nbxcom)..) You can find our CNT marketplace for USDM stablecoin here: https://app.nbx.com/markets
NBX was founded in 2018, and is headquartered in Oslo, Norway. The company is registered with Finanstilsynet (the Norwegian Financial Supervisory Authority) and is listed on the Oslo Stock Exchange Euronext Growth. Our latest public report (H1 2025) can be found on our investor relations page (https://nbx.com/en/investor)
Moneta Digital is the issuer of Cardano’s premier fiat-backed stablecoin, USDM. Launching the USDM token last year, and successfully completing their Project Catalyst Fund 10 proposal (https://milestones.projectcatalyst.io/projects/1000189),,) USDM provides the foundation for lending, trading, and real-world utility on-chain. Its integration across dApps and liquidity pools proves how strategic funding and financial infrastructure can drive measurable network growth. The Moneta Digital team is eager to collaborate with NBX and other partners to extend the utility of its stablecoin.
Moneta Digital LLC is headquartered in Indiana, USA and is Moneta Digital LLC is Federally regulated by Financial Crimes Enforcement Network as a Money Service Business. FinCEN MSB Registration number 31000296483332.
This project builds upon the capabilities of Moneta Digital (https://moneta.global/retail-launch/)) and NBX to issue USDM, as well as our past experience with NBX integrating USDM into our Centralized Exchange (https://nbx.com/en/usdm),,) and utilize Pin4’s capabilities in cash-out solutions (https://www.pin4.com/#how-it-works)..)
We will demonstrate on testnets that the Hydra technology works with cash-out solutions of Pin4. We’ll use that data to evaluate whether this solution can scale effectively for mass adoption. We will test actual cash withdrawals with a peer to peer transfer on the Flip app of USDM that we cash-out at both an ATM and a retailer.
Milestone Title
Initial integration work with pin4
Milestone Outputs
We will create the foundational API and settlement logic to execute a complete USDM transaction flow using Cardano L1. This involves establishing the secure interface between the settlement infrastructure and the Pin4 API network to process fiat withdrawal requests.
Acceptance Criteria
A single Cardano mainnet on-chain transaction of USDM, demonstrably processed through the settlement solution, and must be successfully approved by the Pin4 network for fiat USD withdrawal at a designated retail or ATM location.
Evidence of Completion
Confirmation by Pin4, delivered through official API response logs and internal reconciliation reports, that the specific L1 USDM transaction was successfully received, validated on the Cardano mainnet ledger, and the Pin4 system correctly initiated the request for physical cash withdrawal by the end-user
Delivery Month
3
Cost
33333
Progress
20 %
Milestone Title
Initial Flip App integration
Milestone Outputs
Development and integration of the initial cash-out request feature within the non-custodial Flip App mobile wallet (iOS/Android). This includes implementing the necessary SDK calls to allow users to securely select a cash-out amount, sign a verifiable Cardano transaction with their private keys, and communicate the finalized L1 transaction details to the NBX backend for Pin4 processing.
Acceptance Criteria
The Flip App must successfully initiate and broadcast a valid Cardano L1 transaction for a specified USDM cash-out amount, signed exclusively by the user's non-custodial wallet. The application's UI must accurately process the subsequent API response, resulting in the correct display of the corresponding Pin4 authorization code for withdrawal.
Evidence of Completion
A video demonstration the end-user journey within the Flip App, starting from non-custodial wallet selection, transaction signing, to the final, successful display of the Pin4 authorization code on the screen.
Delivery Month
5
Cost
33333
Progress
40 %
Milestone Title
Integration with NBX platform
Milestone Outputs
Development and deployment of the NBX platform API, specifically designed for secure integration with the Flip App wallet's non-custodial transaction requests. This API will handle transaction routing with the Flip App, balance checks and Pin4 API communication.
Acceptance Criteria
Deployment of a fully functional and documented NBX API endpoint that is securely stress-tested and successfully receives, validates, and processes signed USDM L1 transaction requests originating from the Flip App.
Evidence of Completion
A comprehensive technical documentation (API specification) detailing the Flip App/NBX API interface.
Delivery Month
7
Cost
33333
Progress
50 %
Milestone Title
Commercial prototype
Milestone Outputs
Deployment of the full end-to-end commercial prototype onto the Cardano Mainnet. This system integrates the Flip App, the NBX API, and the Pin4 cash-out network, making the service live for a controlled beta testing group of Cardano users
Acceptance Criteria
Successful execution and full reconciliation of 10 complete, end-to-end cash-out transfers using the Flip App on Cardano Mainnet.This sequence must result in a verifiable fiat USD withdrawal at a physical Pin4 ATM or retailer location by a beta tester, confirming the commercial service is functional and reliable.
Evidence of Completion
A consolidated report providing verifiable evidence for all 10 Mainnet tests, including the unique Mainnet Transaction IDs and the corresponding authenticated Pin4 withdrawal confirmation.
Delivery Month
9
Cost
33333
Progress
70 %
Milestone Title
Prototype of Hydra L2
Milestone Outputs
Deployment of a fully operational Hydra Head on the Cardano Testnet specifically for cash-out transaction low simulation. Implementation and stress-testing of a FanOut logic. Successful execution of simulated cash-out transactions achieving 3,000 settlement transactions in a single 24-hour period to prove high-throughput capability.
Acceptance Criteria
The prototype system must accumulate a total state exceeding 100 UTXOs within the closed Head, and subsequently, the automated logic must successfully realize all UTXOs onto the L1 Testnet. A recorded throughput rate demonstrating the successful processing of 3,000 USDM debits within the Hydra head over a continuous 24-hour simulation period.
Evidence of Completion
Testnet transaction IDs and detailed system log files demonstrating the successful L1 realization of the accumulated state.
Delivery Month
11
Cost
33333
Progress
90 %
Milestone Title
Final Documentation
Milestone Outputs
Production of the comprehensive Final Technical Report and the official Project Catalyst Closeout Report. The technical report will detail R&D findings, including the Testnet validation of the Hydra FanOut logic.
Acceptance Criteria
Submission of the official Project Catalyst Closeout Report, and subsequent formal approval by the designated Milestone Reviewers, confirming all committed deliverables (M1-M5) have been achieved and the R&D findings regarding Hydra L2 scalability have been documented.
Evidence of Completion
The final, approved Project Catalyst Closeout Report submitted to the platform. This evidence must include the public link to the detailed technical documentation package (M4 Hydra R&D findings) and a summarized report on the community beta feedback.
Delivery Month
12
Cost
33335
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
The project requests 200,000 ADA in total funding, allocated across six milestones over a 12-month delivery schedule. We will mint each milestone ADA we receive into USDM.
Each milestone includes a proportional share of development, research, and implementation work necessary to reach the stated outcomes. To maintain fair competition and protect internal rate structures, we are not disclosing individual developer compensation. However, the budget follows a transparent and industry-standard allocation model:
• Approximately 70 percent of the funding supports core engineering, testing, and implementation performed by our internal development team.
• Up to 30 percent is reserved for external expertise, specifically Hydra specialists who may be engaged on an as needed basis to validate or stress test components critical to the solution.
• No funds will be used for marketing, administration, or unrelated overhead. All resources directly support technical delivery.
How does the cost of the project represent value for the Cardano ecosystem?
The project ensures immediate, measurable L1 transaction volume by deploying the Pin4 network for USDM cash-out and accessible through a non-custodial wallet. This provides the commercial proof-of-concept necessary to validate that USDM is a viable asset for real-world financial needs like payroll and remittances, instantly competing with traditional payment rails that often incurring higher fees or longer settlement delays.
We also prototype and validate Hydra's viability as a scaling solution for this type of commercial product.
The combination of the 1M+ app download base of the Flip App and the immediate, high-volume reach of the Pin4 ATM and Retail network gives an instant market channel for USDM stablecoin for cash-out solutions.
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
I Agree
Yes
In addition, the project will leverage: