Sundial Protocol and USDM, a stablcoin created for the defi in Cardano, have announced a collaboration that seeks to integrate the infrastructure of the Bitcoin layer of Sindial with the stable cryptocurrency. This agreement, released on September 10, 2025, aims to explore new possibilities in the decentralized finance ecosystem (DEFI) based on Bitcoin from the Cardano Red.
According to him Announcement on Network Xthe objective of this association is combine USDM liquidity with Sundial technology To develop performance products (Yield) in Bitcoin.
The Website of Sindial ensures that this is the “first native Utxo layer” and a network based on regulatory compliance.
Utxo means «UNSPENT TRANSACTION OUTPUT»(Unbounded transaction output), which is the fundamental model of Bitcoin to track the property of the funds. A “utxo-native” solution implies that this technology is specifically designed to work with the UTXO Bitcoin model, which is why Sindial Does not emit any token and use BTC as the native currency of the protocol.
According to Sam DelaneyLeader in Company Technology, the UTXO model with “transactional determinism” based on Bitcoin facilitates the formal verification of decentralized applications (DAPPS) »and the Sindial protocol itself:
Basically, it mathematically demonstrates that an intelligent contract works as announced and that does not present security vulnerabilities. Previously, these formal verifications were extremely expensive, but we hope to use one of the new tools available so that the equipment can perform them much faster and more economical.
Sam Delaney, leader in protocol technology
USDM was created by Moneta, a company that Innova in the Stablecoins sector within the Cardano Red:
USDM serves as an active base for decentralized finance protocols (DEFI) and allows instant payments in chain, accelerating the growth and adoption of the entire Cardano ecosystem (…). USDM is backed 1: 1 for bank deposits in USD and monetary market funds administered by Fidelity and Western Asset Management, which guarantees stability and safety for all users.
Moneta, a company centered on stablecoins.
This collaboration is aligned with previous visions in the sector, such as Charles Hoskinson, who, as Cryptonoticias reported has described Bitcoin as a “sleeping giant” with potential to lead in Defi. The Soundy and USDM movement could be another step towards the awakening of that potential.