Created for Cardano’s Defi, Sundial Protocol and USDM have announced a collaboration that seeks to integrate Sindial’s Bitcoin layer infrastructure with stable cryptocurrency. Released on September 10, 2025, the agreement aims to explore new possibilities for Cardano Red’s Bitcoin-based Decentralized Financial Ecosystem (DEFI).
According to a release from Network X, the association’s purpose is Combining USDM liquidity with Sindial Technology to develop performance products (yields) for Bitcoin.
The Sindial website ensures that this is the “first native UTXO tier” and a network based on regulatory compliance.
utxo means «Unused transaction output» (Unbound transaction output). This is the basic model of Bitcoin for tracking fund assets. The “utxo-native” solution means that this technology is specifically designed to work with the UTXO Bitcoin model. Sundial does not release tokens and uses BTC as the protocol’s native currency.
According to Sam Delaney of Company Technology Leader, a UTXO model with “transaction determinism” based on Bitcoin, it promotes formal verification of distributed applications (DAPPS) and the Sindial Protocol itself.
Essentially, it mathematically shows that the intelligent contract works as announced and does not present security vulnerabilities. Previously, these formal verifications were very expensive, but we want to use one of the new tools available to make the equipment run faster and more economically.
Samdelany, leader in protocol technology
The USDM was created by Moneta, who uses Innova in the Stablecoins sector within Cardano Red.
USDM serves as a proactive foundation for Decentralized Finance Protocol (DEFI), enabling immediate payments for the chain and accelerates the growth and adoption of the entire Cardano ecosystem (…). USDM is supported 1:1 of USD and financial market fund bank deposits managed by Fidelity and Western Asset Management, which ensures stability and safety for all users.
A company centered around Moneta and Stablecoins.
This collaboration is consistent with the sector’s previous vision, like Charles Hoskinson, as reported by Cryptonoticias, as described Bitcoin. As a “sleeping giant” with the potential to lead the defi. The movement of Soundy and USDM could be another step towards awakening that possibility.
