Bootstrapping BTC Defi on Cardano with a leading Bitcoin-First Wallet 主要なBitcoinファーストウォレットによるCardano上でのBTC DeFiのブートストラップ

2026 will be an important year for Cardano to become the infrastructure for Bitcoin Defi. And while Cardano aims to increase real adoption, TVL, and high-quality transactions, with a central strategic narrative around Bitcoin DeFi, today, most Bitcoin holders are completely outside the Cardano ecosystem, BTC is largely locked out of DeFi, and the few BTC DeFi options that do exist are fragmented, complex, or custodial.

At the same time, Cardano’s governance and real-world adoption roadmap relies on wallets as the primary gateway for users to participate as dReps, in voting on-chain, SPO delegation, as well as be used in identity-aware applications. Yet no major BTC-first wallet currently supports ADA, CNTs, or Cardano governance.

Zengo is a BTC-first, UTXO-native, non-custodial wallet with over 2 million registered users, hundreds of millions in AUM, and with billions of dollars of bitcoin transactions processed to date. Its team has been searching for a secure, reliable, non-custodial solution to offer Bitcoin yield and BTC DeFi to its users and has not yet found an adequate infrastructure partner - until now, with the emergence of Sundial Protocol and the broader Bitcoin–Cardano DeFi stack.

This proposal is explicitly about onboarding a Bitcoin-first wallet into Cardano, so that BTC users can:

• Access Bitcoin staking / yield via Cardano-powered platforms (e.g., Sundial)
• Hold and use ADA/CNTs alongside BTC in a battle-tested wallet
• Participate in Cardano governance (dReps, voting, identity) from the same interface they already trust for BTC

In short: this proposal connects Cardano directly to Bitcoin’s user base by integrating a leading BTC-first wallet, and then wiring that wallet into Bitcoin DeFi on Cardano.

1. Bitcoin DeFi
   Most Bitcoin remains inaccessible to DeFi, and existing BTC DeFi options are difficult to use, fragmented, and often rely on custodial or synthetic models. A BTC-first wallet that surfaces native, non-custodial Bitcoin yield on Cardano (via protocols like Sundial) is a powerful way to:
   • Channel BTC liquidity into Cardano DeFi
   • Create sustainable feedback loops between BTC yield and Cardano TVL
   • Make Cardano the natural home for Bitcoin DeFi.
2. Identity & Governance
   Cardano’s governance (SPOs, dReps, on-chain voting, Intersect, etc.) depends on wallets as the UX bridge. Zengo can bring Bitcoin users into Cardano governance by:
   • Allowing BTC-first users to delegate to dReps and vote on-chain
   • Using its enforced personhood model to help support more robust identity-aware governance flows.
3. Real-World Adoption
   Cardano’s architecture and values align with use cases such as RWAs, agentic AI, compliant on-chain governance, and institutional participation. BTC holders - both individuals and teams - need a wallet that:
   • Works seamlessly for multi-user / team accounts
   • Is secure enough for serious treasury management
   • Connects BTC, ADA, and real-world focused Cardano apps in a single, trusted UX.

Zengo is uniquely positioned to support all three pillars, with a Bitcoin-first, UTXO-native, MPC-based wallet and a proven security record.

• 2M+ BTC-First Users Ready to Onboard Cardano:
  Cardano support has been among Zengo’s top user requests in the past 12 months. This proposal turns those BTC users into Cardano users, not just adding ADA support, but providing a direct path into Bitcoin DeFi on Cardano.
• Large Economic Activity:
  Billions of dollars worth of Bitcoin transactions has already been processed by Zengo and hundreds of millions of dollars in AUM. Future BTC economic activity is ready to be “put to work” on Cardano.
• UTXO-Native Expertise:
  Zengo is a Bitcoin-first wallet with deep operational experience running UTXO-based chains (e.g., BTC, Dogecoin, Litecoin). This makes Cardano’s UTxO model a natural fit from a technical and security standpoint.
• True Cross-L1 Capability:
  Zengo has already added and is operating with ~10 L1s at scale - including Bitcoin, Ethereum, Solana, Tron, etc.. Adding Cardano (and Cardano-based Bitcoin DeFi) extends that cross-chain reach into a highly-composable, governance-rich ecosystem, and Zengo has the necessary background to successfully add a new L1.
• Cardano readiness: Zengo works with a broad range of integrated vendors and partners that are “Cardano ready” (Node providers, On/Off ramps, Swaps, Staking) and which will make the integration process smooth and open
• DeFi-Ready and Smart-Contract Aware:
  Zengo is an on-chain wallet built for DeFi and dApp connection, with experience integrating complex smart contract flows and security checks. This is critical for safely integrating Sundial-powered Bitcoin staking and yield into a BTC-first UX. Zengo already supports significant volumes of Wrapped Bitcoin for Defi (WBTC, CBbtc, lBTC, …) and BTC primary Defi functions (Connect to apps, swap, dex,..)
• Enforced Personhood for Governance:
  Zengo is the only non-custodial wallet with proof-of-personhood enforced at the security and transaction level, which is directly relevant for dReps, identity-aware governance, and Sybil-resistant participation.
• Designed for Individuals and Teams:
  Real-world adoption requires wallets that work for both individuals and organizations. Zengo Business already supports multi-user, multi-signature-like controls and will extend these capabilities to ADA/CNTs and Bitcoin DeFi positions on Cardano.
• Impeccable Security Track Record:
  Since launch, no Zengo account has ever been hacked or taken over - a rare claim among software and hardware wallets. Zengo would be the first major wallet on Cardano with this level of verified security history, which is especially important when onboarding Bitcoin treasuries.
• Compliance readiness: Zengo was granted ISO27001 certification and UK approval for financial promotion.

Does this proposal align to the Product Roadmap and Roadmap Goals?
Yes. It directly supports Cardano’s goals of growing TVL, increasing high-quality transactions, and expanding governance participation, with a strong strategic emphasis on Bitcoin DeFi and cross-chain interoperability.

Does your proposal align with any of the budget categories?
Yes:

• Wallets & Identity
• DeFi & Liquidity Growth
• Governance & Participation
• Ecosystem Growth / Adoption

Does your proposal align with any of the Intersect Committees?
Yes:

• Cardano Product Committee – Bitcoin DeFi and on-chain liquidity via Sundial and other partners
• Technical Steering Committee – wallet integration, Web3 security, key management
• Cardano Civics Committee – dRep delegation, on-chain voting, identity-aware participation

Evidence of wider community endorsement

• Zengo is collaborating with Sundial Protocol, a core project in Bitcoin–Cardano DeFi, to integrate Bitcoin staking and yield on Cardano.
• Sheldon Hunt and Yoram Ben Zvi (co-founders of Sundial) are both active and well-known contributors in the wider Cardano community.
• The Cardano Foundation business team is already working to onboard Zengo as a major partner for TVL growth and new user acquisition.

While Cardano has excellent native wallets, onboarding a BTC-first wallet with over 2 million users represents a step-change opportunity for Cardano’s Bitcoin DeFi narrative and overall DeFi adoption.

Objective
To deliver the best joint Bitcoin–Cardano wallet experience for Bitcoin DeFi, identity, and governance - for both individuals and businesses - by integrating Cardano and Cardano-based Bitcoin DeFi into Zengo’s BTC-first wallet.

Zengo commits to building a feature-rich, non-custodial Cardano integration that includes ADA, CNTs, DeFi, NFTs, governance, and - most importantly - Bitcoin staking and BTC DeFi via Cardano infrastructure (Sundial and partners).

The project is structured into 4 phases, each delivering visible, user-facing value and progressively deepening the Bitcoin–Cardano integration.

Goal: Zengo users (including BTC-first users) can hold and transact ADA in the same app they already use for Bitcoin.

Key Deliverables:

• Create a Cardano wallet with MPC/keyless backup and recovery
• Main ADA support: send, receive
• Zengo’s first integration of EdDSA crypto system with a UTXO-based transaction model for Cardano
• Partner integrations: Buy, Swap, Sell ADA via existing on-ramp / off-ramp partners

Definition of Done:
Zengo users can safely store, send, receive, and trade ADA, with full recovery and security flows operational.

Goal: Extend Cardano support to CNTs and business accounts, preparing infrastructure for BTC-driven DeFi flows (stablecoins, RWAs, etc.).

Key Deliverables:

• CNT support: send, receive Cardano native tokens
• Integration of UTXO-based tokens (e.g. IAGON, USDM, stablecoins, etc.)
• Partner integrations: purchase and swap CNTs via supported partners
• Zengo Business integration for ADA and CNTs
• Business partner integrations: on-ramp, off-ramp, swap for ADA/CNTs
• Advanced privacy features for Cardano assets

Definition of Done:
Individuals and teams can manage ADA, BTC and CNTs via Zengo, with business-grade features and privacy controls.

Goal: Enable full DeFi and Web3 interaction on Cardano, making BTC users first-class participants in Cardano DeFi.

Key Deliverables:

• Liquid staking support for ADA (e.g., via partners such as Everstake)
• Applying Zengo ClearSign (Web3 firewall) to Cardano dApps for phishing and risk mitigation
• Smart token engine to spot, monitor, and list high-demand Cardano tokens within minutes
• NFT support (for selected projects)
• Smart-contract interaction via WalletConnect
• Support for programmable tokens (CIP-113)

Definition of Done:
Zengo users can connect to Cardano dApps, stake ADA, interact with NFTs, and participate in DeFi - with ClearSign protections covering Cardano transactions.

Goal: Deliver Bitcoin-first DeFi and governance experiences on Cardano, powered by Sundial and the governance stack.

Key Deliverables:

• Deep integration between Zengo and Sundial Protocol to enable Bitcoin staking and BTC DeFi on Cardano directly inside Zengo
• Pilot integration followed by scaling to full production deployment by Q4 2026
• UX flows for BTC users to:
  • Allocate BTC into non-custodial BTC yield on Cardano
  • Track BTC yield positions inside Zengo
• Exploration and implementation of governance features, such as:
  • Delegating to a dRep
  • On-chain voting participation
  • Governance dashboards tailored for both BTC and ADA holders

Definition of Done:
Zengo becomes a Bitcoin-first gateway to Cardano DeFi and governance, with live BTC staking/yield and core governance flows integrated.

Key Dependencies:

• Cardano mainnet and Sundial Protocol mainnet availability and stable APIs (for Bitcoin DeFi integration)
• Cardano infrastructure partners (RPC, indexing, WalletConnect providers)

No hard dependencies on a single vendor beyond standard infrastructure needs; Zengo will design for redundancy and modularity.

• This proposal includes multi-year maintenance (3 years) for Cardano and Bitcoin DeFi integrations.
• Zengo expects Cardano-related transactions and BTC DeFi flows to cover and exceed ongoing costs, making the integration sustainable.
• Zengo will also consider:
  • Operating an SPO
  • Offering staking opportunities for users through trusted partners
  • Continuing joint marketing and education efforts with key Cardano entities (Sundial, Intersect, Cardano Foundation, etc.).

• Phase 1: ADA support live in Zengo (store, send, receive, buy, swap).
• Phase 2: CNT and Zengo Business support live (tokens, business flows, privacy).
• Phase 3: Full Cardano DeFi/Web3 support (staking, NFTs, WalletConnect, ClearSign).
• Phase 4: Live Bitcoin DeFi integration with Sundial, plus governance participation features.

The Cardano community ultimately receives:

• A production-ready Bitcoin DeFi UX on Cardano with 2M+ potential users.
• A BTC-first, multi-chain, MPC-secured wallet with full ADA/CNT support.
• Enhanced, secure governance participation (identity-aware, personhood-enforced) for BTC and ADA holders.

Task	Estimation [Men/Month - MM]	Milestone
Basic support (main asset send receive)	4MM	1
EdDSA crypto system with UTXO	2MM	1
Token support (UTXO based)	1MM	2
Privacy mode for Cardano	1MM	2
Zengo Business	6MM	2
Staking support	3MM	3
Smart contracts support via WalletConnect	4MM	3
ClearSign (web 3 firewall)	4MM	3
NFT support	4MM	3
Programmable tokens (CIP113 compliant) support	6MM	3
BTC Staking and Sundial Integration	6MM	4
ADA governance support	1MM	4

Zengo is a highly secure, non-custodial wallet serving individuals, groups, and businesses. Key experience highlights:

• Over 2 million registered customers, with multi-chain support and growing institutional/business usage.
• First wallet (2019) to implement Secure Multi-Party Computation (MPC) for chain-agnostic, “MultiSig-like” security, eliminating traditional single private keys.
• First to launch a Web3 firewall (Zengo ClearSign) to protect users against malicious dApps and transactions.
• Zengo is fully legally compliant (ISO 27001), and is UK approved (Archax).
• To date, no Zengo account has ever been hacked or compromised, which is exceptional compared to common private-key-based software and hardware wallets.

Zengo now plans to ship full Cardano support (store, send, receive, buy, swap, connect) for both individuals and business teams, with Bitcoin DeFi on Cardano as a central pillar.

ADA Amount Requested: 4.29 million ADA
USD to ADA Conversion Rate (assumed): 0.35 USD / ADA

Preferred Currency: ADA
Total in Preferred Currency: 4,290,000 ADA

Cost Projections

• Development (60 MM @ ~12.5K USD / MM): ~800,000 USD
• External Security Audit: 50,000 USD
• Ecosystem Integrations: 250,000 USD
• Sundial Deployments: 100,000 USD
• Cardano ecosystem collaboration & joint activities
  (events, online campaigns, social media, etc.): 150,000 USD
• Internal marketing/campaigns to 2M users + localization
  (in-app banners, product touchpoints, emails, Zengo Pro promos, support training & materials, localization of content /support in key markets like Japan): 150,000 USD

Total Cost: 1,500,000 USD (≈ 4.29M ADA at $0.35; 4.29M ADA allows for FX and volatility buffer)

Price Appreciation Treasury Return Plan

Should ADA appreciate in price above and beyond $0.35, and the value in USD terms surpass $1.5M USD, Zengo will return to the Cardano treasury the ADA surplus. The fiat price of development will remain stable.

• ✅ 2M+ New Users: Immediate exposure to Cardano and CNTs for over 2 million crypto-native Zengo users, turning Bitcoin holders into active Cardano participants.
• ✅ Direct BTC Liquidity: Establishing direct, non-custodial lineages for Bitcoin to flow seamlessly from Zengo wallets into Cardano’s DeFi infrastructure.
• ✅ Significant Value Inflow: A projected inflow of $10M–$50M in new value into the Cardano ecosystem as a direct result of this integration.
• ✅ Unprecedented Security: Introducing the first MPC-based, seed-phrase-free wallet to the ecosystem, attracting security-conscious individuals and institutions.
• ✅ Cross-Chain Governance: Enabling a new demographic of BTC-first users to actively participate in Cardano’s governance (dReps, voting, and identity) from a trusted interface.
• ✅ Strategic Validation: Cementing Cardano’s position as the premier layer for Bitcoin DeFi by securing a major, independent, and battle-tested wallet partner.

Zengo Wallet is the most secure self-custodial cryptowallet, trusted by over 2 million individuals and businesses in 180+ countries. Since 2018, no Zengo wallet has ever been hacked. Zengo Pro includes advanced features like Bitcoin Protection Vaults, an inheritance service, free gas, and exclusive discounted fees. Zengo Business offers institutional-grade security and team wallets for SMBs and enterprises. Powered by MPC cryptography, Zengo has no seed phrase vulnerability and is backed by Insight Partners, Tether, and other leading investors.

• Website: https://zengo.com/
• X: http://x.com/zengo
• Security & ClearSign Info: https://zengo.com/security/
• Sundial Protocol Partner Background: https://www.sundialprotocol.com/