Private RWA Settlement Layer

[Proposal setup] Proposal title

Please provide your proposal title

Private RWA Settlement Layer

[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?

On-chain RWA needs privacy and regulator-ready compliance. Existing models are either too transparent or fully opaque, leaving no confidential yet auditable layer.

[Proposal Summary] Supporting Documentation

Supporting links

• https://www.notion.so/dianone/Private-RWA-Settlement-Layer-Architecture-Use-Case-Documentation-2b7560c01efd80f7b21bcef9abbfa8d8?source=copy_link

[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

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

We will open-source the ZK settlement module, verification circuits, Cardano verifier contracts, and the demo SDK. Enterprise rule sets stay closed during the MVP phase.

[Theme Selection] Theme

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

RWA

[Campaign Category] Category Questions

What is useful about your DApp within one of the specified industry or enterprise verticals?

Novelty: The Private RWA Settlement Layer is the first natively private yet audit-friendly settlement engine on Cardano. It combines a transparent layer on Cardano with a privacy layer on Midnight to protect sensitive business details (interest rates, invoice amounts, counterparty identities, contract terms) while proving compliance via zero knowledge proofs. Settlement outcomes (settled/default/compliant) and proofs are public and verifiable on-chain, giving regulators and investors confidence without exposing confidential information. This dual‑layer design addresses the industry’s false choice between full transparency and total opacity and unlocks enterprise workflows like RWA bonds, supply‑chain financing and invoice factoring.

What exactly will you build? List the Compact contract(s) and key functions/proofs, the demo UI flow, Lace (Midnight) wallet integration, and your basic test plan.

Build plan: We will implement a dual‑layer RWA settlement engine. On Midnight we will deploy confidential contract modules and data structures for supply‑chain amounts and parameters. We will build zero‑knowledge circuits to validate interest calculations and amount consistency, together with a private storage module. On Cardano we will deploy a verifier smart contract to verify the ZK proofs and publish settlement states. The demo front‑end will allow enterprises to upload contract terms and investors/regulators to view settlement status and proofs. The SDK will provide reusable APIs for future RWA projects. Our test plan targets ≥80 testnet transactions across ≥30 wallets covering scenarios like early settlement and installment payments.

How will other developers learn from and reuse your repo? Describe repo structure, README contents, docs/tutorials, test instructions, and extension points. Which developer personas benefit, and how will you gauge impact (forks, stars, issues, remixes)?

Reuse & learning: All core components – ZK settlement proof module, payment verification circuits, Cardano verifier contracts, demo UI and SDK – will be open sourced. The repository will have a clear structure with modules for circuits, contracts, front‑end and docs. The README will outline the architecture, build instructions, test scripts and extension points. Documentation will include tutorials and example flows so developers can integrate their own RWA products. We plan to provide extension guides for enterprise builders and engage the community via GitHub issues and discussions. This will enable dApp developers and regulated finance teams to reuse and adapt the settlement engine for bonds, supply‑chain or trade finance use cases.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Our solution is a dual‑layer RWA settlement engine that combines a transparent state layer on Cardano with a privacy layer on Midnight. Enterprises privately input contract terms (interest rates, payment schedules, invoice amounts, counterparty rules) into Midnight, where confidential settlement logic calculates due amounts and generates zero‑knowledge proofs. These proofs are published on Cardano alongside settlement results (settled, default, compliant), enabling regulators and investors to verify that contracts were honored without exposing sensitive business data. This architecture solves the problem of bringing real‑world assets on‑chain by preserving privacy, meeting compliance requirements and avoiding the binary choice between fully transparent or fully opaque models.

[Your Project and Solution] Impact

Please define the positive impact your project will have on Midnight ecosystem

This project will catalyze the adoption of Midnight by providing the ecosystem’s first enterprise‑ready private RWA settlement model. By proving that sensitive supply‑chain and corporate finance workflows can run privately on Midnight while still providing verifiable settlement proofs on Cardano, the project expands the universe of dApps that can be built on Midnight. Open‑sourcing the ZK circuits, verifier contracts and SDK will enable other teams to reuse these components, reducing development costs by ~70% and accelerating innovation in areas like RWA bonds, invoice factoring, trade finance and compliant digital assets. It positions Midnight and Cardano as a trusted platform for institutional DeFi and regulated finance use cases.

[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 has deep expertise in enterprise finance system design, RWA workflows, Midnight and Cardano smart contract development, and zero‑knowledge circuit engineering. We understand supply‑chain and corporate finance requirements and have designed the system to operate without external data dependencies. All deliverables will be tested on the Midnight and Cardano testnets, with transparent evidence via transaction hashes, GitHub commits and demo logs. Feasibility will be validated through a full MVP demonstrating a private‑to‑public settlement cycle, ≥80 testnet transactions across ≥30 wallets and multiple compliance scenarios (early settlement, installment payment). By open‑sourcing the code and documentation, we ensure accountability and reproducibility, and our risk mitigation plan avoids reliance on third‑party infrastructure.

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

The total project budget is USDM 7,000, allocated across the core components required to deliver a functional private RWA settlement engine. Costs include: Core Development (1,200), ZK Engineering (2,000), Smart Contracts (1,200), Testing & QA (600), UI and SDK development (1,000), and Documentation (1,000).

[Final Pitch] Value for Money

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

This project delivers exceptionally high value for a small USDM 7,000 budget. It provides core infrastructure that the Cardano and Midnight ecosystems currently lack: a privacy-preserving, compliance-ready RWA settlement layer with reusable ZK modules, verifier contracts, and an SDK. These components will reduce the development cost for future RWA teams by enabling them to adopt ready-made circuits, workflows, and architecture templates. Because the system is fully open-source, transparent, and testnet-verifiable, the community benefits long after the grant is delivered. A minimal investment produces a scalable foundation that can support multiple enterprise and institutional RWA use cases across the ecosystem.

[Self-Assessment] Self-Assessment Checklist

I confirm that the proposal clearly provides a basic prototype reference application for one of the areas of interest.

Yes

I confirm that the proposal clearly defines which part of the developer journey it improves and how it makes building on Midnight easier and more productive.

Yes

I confirm that the proposal explicitly states the chosen permissive open-source license (e.g., MIT, Apache 2.0) and commits to a public code repository.

Yes

I confirm that the team provides evidence of their technical ability and experience in creating developer tools or high-quality technical content (e.g., GitHub, portfolio).

Yes

I confirm that a plan for creating and maintaining clear, comprehensive documentation is a core part of the proposal's scope.

Yes

I confirm that the budget and timeline (3 months) are realistic for delivering the proposed tool or resource.

Yes

[Required Acknowledgements] Consent & Confirmation

I Agree

Yes