Kima Teams up with Mastercard's FinSec Lab to Build Bridge between DeFi and Traditional Finance
Summary:
In collaboration with Mastercard’s FinSec Innovation Lab, Israeli fintech Kima is working on a project to create a 'DeFi credit card' by integrating decentralized finance (DeFi) tools and traditional services, such as bank accounts and credit cards. Kima aims to bridge the gap between blockchain networks and conventional financial means. The project is backed by the Israel Innovation Authority and aims to overcome regulatory and technical barriers to adoption of DeFi.
In collaboration with the FinSec Innovation Lab backed by Mastercard, the Israeli fintech company, Kima, has initiated a project aimed at developing a practical case scenario that integrates decentralized finance (DeFi) solutions with traditional services such as credit cards and banking systems, thereby actualizing the concept of a 'DeFi credit card'. This project has the backing of the Israel Innovation Authority.
Kima, known for its peer-to-peer payment transfers and monetary protocols, functions through a blockchain mechanism devoid of smart contracts which it considers to be unsteady and in an experimental phase. Kima's future plans involve the expansion of its current protocol accompanied by the launch of a mainnet and digital token by the second quarter of 2024. A Kima node will be operated by FinSec, making it a significant shareholder within the network.
FinSec, an entity backed by the Israel National Cyber Directorate, the Finance Ministry, and the Innovation Authority, is familiar with collaborating with startups specializing in Fintech and Cybersecurity. The Kima project was formally introduced in July 2023.
The focal point of this project revolves around building a bridge between traditional finances and DeFi, thereby aiding users in overcoming technical and legislative roadblocks obstructing the widespread adoption of DeFi. Eitan Katz, Co-founder and CEO at Kima, remarked that for blockchain and DeFi technologies to become predominant beyond the restricted confines of the Web3 world, there needs to be a secure, affordable, and readily available medium to seamlessly integrate traditional finances with blockchain networks.
Kima is witnessing fast-paced growth with six integrations and 18 partnerships announced solely in the year 2024, including business ventures extended to Vietnam and Thailand. Further, Kima has recently become a part of the incubator associated with the AI protocol ChatGPT, while utilizing AI for its liquidity management algorithms.
Israel21c reports that Kima is among the 16 companies currently supported by FinSec. Mastercard is actively participating in numerous projects connected to blockchain development. It has partnered with US banks on tokenized settlements via shared ledger, collaborated with DeFi platform Nexo in building a cryptocurrency-enabled credit card in European Economic Area, and is researching on central bank digital currency in partnership with various blockchains and payment providers.
Published At
5/14/2024 8:38:08 PM
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