cp: 155
title: Funding Request for ADE Tokenization Platform Development with Innowise
authors: The_Phunky_One
contributors: Marcelo (M_ADE), Isaac (Puzunki)
beneficiary: ADE
wallet: (will be updated / added at a later date)
uses-component: CP2
technical-proposal: no
requires-onchain: yes
impacts/modifies:
status: rfc
date-proposed: 2025-03-18
date-ended: TBD
Short Summary:
This proposal seeks $164,250 in funding from the Centrifuge DAO Treasury–distributed across two major milestones with each milestone being broken into smaller payment tranches–to support ADE (Activos Digitales Estandarizados) in developing a tokenization platform for certificates of deposit (CDs) in El Salvador. ADE has established relationships with El Salvador’s regulatory bodies and state banks, positioning it uniquely to tokenize the $6 billion CD market, driving significant Total Value Locked (TVL) to Centrifuge.
ADE is collaborating with Innowise, a specialized European blockchain development firm, to build the MVP and integrate with Centrifuge. This project expands the Real-World Asset (RWA) ecosystem by bringing institutional-grade financial instruments into DeFi, establishing Centrifuge as the premier blockchain for regulated financial tokenization in Latin America.
High-Level Objective:
To develop a tokenization platform that enables the digitization and tokenization of El Salvador’s certificates of deposit, facilitating their integration into decentralized finance (DeFi) on Centrifuge, while establishing a long-term strategic partnership between ADE and the Centrifuge team and DAO for further financial product innovations. This initiative aligns with Centrifuge’s multi-chain EVM vision, ensuring integration with the largest pools of on-chain liquidity, developer tooling, and institutional investors, positioning Centrifuge as the go-to blockchain for financial tokenization.
Background of Proposal:
El Salvador’s banking system holds over $6 billion in CDs–the savings vehicle of choice–yet these instruments are illiquid and restricted to traditional finance. ADE, a newly created digital asset company in El Salvador, is collaborating with state banks to create a tokenized Certificates of Deposit (CDTs), offering:
- Liquidity & Composability: CDs become tradable financial assets in DeFi.
- Institutional Adoption: ADE is working directly with regulatory bodies and banks, ensuring compliance and seamless on-ramping.
- Tax Efficiency: Under El Salvador’s Digital Asset Law, tokenized CDs benefit from favorable tax treatment, incentivizing adoption.
To unlock this opportunity, ADE must first develop a Proof of Concept (POC), followed by a Minimum Viable Product (MVP). The requested funding will cover the costs of development, regulatory coordination, and integration with Centrifuge–with a vision for long-term collaboration between ADE and Centrifuge.
Description of Activity:
- Development of a proof of concept (POC) to demonstrate the feasibility of tokenized CDs on Centrifuge.
- Engagement with El Salvador’s regulators and private banks to refine the technical and legal framework + middleware architecture integration with banks core systems.
- Iterative development leading to a minimum viable product (MVP) that will facilitate the issuance of the digital asset commercial license approval, in order to start tokenizing institutional banks’ CDs through Centrifuge blockchain technology.
- Long-term partnership discussions between ADE and Centrifuge to scale the initiative and introduce additional DeFi primitives in El Salvador.
Risk Assessment:
- Regulatory Uncertainty:
While El Salvador is progressive in its digital asset policies, regulatory approvals are still required.- Mitigation: ADE is working directly with state banks and regulators to ensure compliance.
Bank’s due diligence on becoming an official bank supplier takes a lot of time, causing delays on architecture integration
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Mitigation: ADE has been in multiple conversations with bank stakeholders, and was actually responsible for updating the bank’s legal requirements to be official digital asset providers. Plus, ADE will use sandbox environments to allow banks to test the platform before full integration, reducing perceived risks and onboarding time.
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Technical Development Risks:
Delays or challenges in software development may arise.- Mitigation: Innowise is a highly experienced development firm with a proven track record within blockchain products in the institutional financial sector. Development follows an Agile methodology, ensuring iterative testing, faster issue resolution, and adaptive project management. Parallel testing and modular deployment will be implemented, allowing different components (e.g., OnchainID, Private Data Layer, Custodial Wallet) to be tested independently, reducing risk bottlenecks.
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Adoption Risks:
State banks and depositors may be slow to adopt tokenized CDs.- Mitigation: The POC and MVP will demonstrate the benefits of tokenization to key stakeholders, especially in light of the tax free laws around digital assets in El Salvador. At the same time, the MVP will include a real-world test phase where select institutions can pilot tokenized CDs under controlled conditions. ADE also plans to help banks promote CDTs through mutual marketing campaigns + educational workshops and regulatory briefings with bank executives, legal teams, and institutional investors to increase adoption confidence.
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Security Risks:
Smart contract vulnerabilities or security breaches- Mitigation: The platform will undergo multiple independent security audits before full deployment. Only battle-tested smart contract standards will be used. To mitigate risks from the banking side, ADE will implement tamper-proof digital footprints to track all interactions, making unauthorized changes impossible. Additionally, ADE’s infrastructure will ensure that even in the event of a breach, banks will maintain full transparency and immutable transaction records, eliminating the possibility of undetected hacks originating from ADE’s platform. Immutable transaction records will be stored on-chain, providing full auditability and preventing undetected fund mismanagement.
Sustainability:
- ADE’s long-term vision includes rolling out additional tokenized RWAs + DeFi products beyond CDs - ensuring continuous growth in adoption and TVL.
- Once the MVP is successfully deployed, the platform will generate transaction fees on the issuance, transfer, and trading of tokenized CDs reducing the need for further DAO funding.
Collaborations and Partnerships:
- ADE is directly working with El Salvador’s regulators + private & state banks to introduce tokenized CDs.
- Innowise, a Poland-based software development firm, will build the tokenization infrastructure on Centrifuge.
- Centrifuge DAO will play a key role in funding and technical guidance to ensure successful integration.
- GlobalStake is an institutional focused, enterprise grade, SOC2 Type II certified bare metal blockchain infrastructure company. Their legal team is engaged in the process of creating an El Salvador business entity to provide RPC endpoints and other necessary hardware to ensure the ADE project connects seamlessly to Centrifuge (GS currently runs an RPC for Centrifuge for free under their community label, Lucky Friday).
- GK8, an institutional-grade custody technology provider, is the main candidate to provide multi-party computation (MPC) wallet infrastructure.
- Torres Legal, a prominent legal advisory firm in El Salvador, who specializes in blockchain and digital assets law, are advising ADE. Torres has actively participated in shaping the country’s digital asset regulatory framework, including involvement in panels on digital assets and the Digital Asset Issuance Law.
Change or Improvement:
- Introduces a major new RWA category on Centrifuge, significantly increasing TVL.
- Establishes Centrifuge as a go-to platform for financial institutions exploring blockchain solutions.
- Strengthens Centrifuge’s presence in Latin America, a region increasingly adopting blockchain innovations.
Alignment to the Mission of Centrifuge DAO:
- Real-World Asset Expansion: This project aligns with Centrifuge’s goal of integrating RWAs into DeFi.
- Strategic Growth: ADE’s roadmap includes additional DeFi products beyond CDs, providing long-term benefits to Centrifuge DAO.
- Regulatory Engagement: Working with state banks and regulators ensures that Centrifuge remains compliant while expanding its institutional footprint.
Description of Group(s) Seeking Funding:
- ADE (Standard Digital Assets): A digital asset firm in El Salvador specializing in financial innovation and blockchain applications.
- Innowise: A European software development company with expertise in blockchain infrastructure in institutional financial enterprises.
- Centrifuge DAO Governance Voters / TAG: Will oversee the grant and ensure alignment with DAO objectives.
Budget:
Total ADE Invested to Date: $53,369
In short:
- $20,000 on Vision and Scope discovery phase document to Innowisee
- $16,000 Torres Legal
- $7,369 Software / data security
- $10,000 2 month MPC sandbox costs
Total Request: $164,250
- Milestone 1 ($45,000) - Proof of Concept (POC) Development
- Milestone 2 ($45,000) Part 1 - MVP Core Development
- Milestone 2 ($45,000) Part 2 - Testing & Pre-Production Deployment
- Milestone 2 ($29,250) Part 3 - Final Production Launch & Admin Panel Completion
Measurement and Evaluation:
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Milestone 1 ($45,000) Success Indicators:
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Infrastructure Setup:
- AWS, GitHub, Perimeter81
- PoC AdeWall Platform (Core):
- Demo Bank Emulator (with emulation of user entry into application and mocked API Integration)
- OnchainID creation
- CD Tokenization on deposit creation
- CD renewal, closureLoyalty Program Workflow
- uMPC Sandbox Setup:
- The platform-hosted node acts as the core signing node, ensuring that any wallet transaction signing requires explicit platform control, providing a secure and auditable signing process.
- Each node stores private key shards separately, making unauthorized access infeasible
- PoC AdeWall Platform (Custodial Wallet):
- Integration with GK8 in testnet and sandbox
- Integration of Transaction Signing and Execution.
- This component interfaces with API endpoints of an external provider´s tech stack, such as GK8 by Galaxy, in order to safely handle wallet operations for the platform, banks, and bank clients.
- PoC Private Data Layer (AdeWall PDL) The Private Data Layer provides banks with:
- PoC of a private data layer for sensitive data exchange with basic security dedicated for further extension.
- Peer-to-peer infrastructure with identity-based communication.
The PoC version considers development of a base PDL Solution for further functional extension in the MVP solution. The target is to setup a base PDL network and develop a basic node which can connect to the Network based on the given identity and can send the non-typed and non-structured abstract message through a setup secure encrypted channel with basic security setup.
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Milestone 2 ($45,000) Part 1 Success Indicators:
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PoC features extension, quality improvement, detailed review and adjustments (based on invested effort and pending development):
- OnchainID generation
- Node and wallet
- CD Tokenization
- CD Tokenization Management Workflows
- Smart Contracts Deployment
- Blockchain Indexer
- Private Data Layer
- dApp Smart Contracts
- Backend Core development including extensions and security improvements for the PDL.
- Auth microservice - combined for 2FA, KYC, Wallet
- Minting microservice
- Transfer lock mechanism
- Burning mechanism after drawbacks of tokens
- Transfer of ownership for tokens. GK8 as main candidate for solution
- Balance keeping for available tokens
- Integration with bank SDK
- PDL extension and improvements
- Testnet blockchain components release
- DEV env setup and services deployments - AWS, GitHub, Perimeter81
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Milestone 2 ($50,000) Part 2: Success Indicators:
-
Backend Core development continuation.
- Continuation of bank SDK development
- Tokens management microservice
- Peer-to-peer order matching mechanism
- Analytic across token’s ownership for reconciliation microservice
- PDL extension and improvements
- PDL integration
- Providing back office endpoints for Admin Panel integration
- Admin panel
- Users Management and Support
- Basic anti-fraud and AML
- Performance monitoring
- Transactions monitoring
- PROD env setup
- AWS, GitHub, Perimeter81
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Milestone 2 ($16,250) Part 3: Success Indicators:
-
Admin panel functionality completion
- Basic anti-fraud and AML
- Performance monitoring
- Transactions monitoring
- QA & Bug Fixes
- Stabilisation
- Architecture review
- Mainnet release
Delivery and Reporting:
- Milestone 1: Estimated completion 2 months after funding approval.
- Milestone 2- Part 1: Estimated completion 2 months after Milestone 1.
- Milestone 2- Part 2: Estimated completion 2 months after Milestone 2, Part 1.
- Milestone 2- Part 3: Estimated completion 1 month after Milestone 2, Part 2.
- Reporting: ADE will provide monthly progress reports to Centrifuge DAO.
Legal and Ethical Considerations:
- Full compliance with El Salvador’s financial regulations and blockchain guidelines.
- Close coordination with state banks and regulators to ensure a legally sound rollout.
Milestone-Based Funding:
- Milestone 1 ($45,000) - Proof of Concept (POC) Development - Develop and validate the feasibility of tokenized CDs on Centrifuge
- Milestone 2 ($45,000) Part 1 - MVP Core Development - Expand the POC into a functional Minimum Viable Product (MVP) with smart contract deployment and initial integrations.
- Milestone 2 ($45,000) Part 2 - Testing & Pre-Production Deployment - Further development, security testing, and deployment to a development (DEV) and pre-production (PROD) environment.
- Milestone 2 ($29,250) Part 3 - Final Production Launch & Admin Panel Completion: Complete final testing, integrate the admin panel, and launch the platform for real-world use.
Goals and Themes Alignment:
- Goal(s) Supported: Expansion of RWAs, institutional engagement, and increased TVL on Centrifuge.
- Theme(s) Supported: Financial inclusion, DeFi growth, and strategic ecosystem partnerships.
This proposal establishes a high-impact, long-term collaboration between Centrifuge and ADE, positioning Centrifuge as a leader in tokenized RWAs while unlocking billions in institutional assets for blockchain-based financial products.
Proposed on behalf of ADE by The Phunky One, on-chain ID:
4cDqRFqruFThBDcnS7pRipwoxwGqLaD3SwrFRR6kcDaLwagz
Currently helping the ADE team set up a wallet and create an on-chain ID, which will be updated on this proposal during the RFC phase.