Kima, an Israeli fintech company, is on a mission to bridge the gap between traditional finance and Web3 technologies, aiming to enhance user experience and accessibility.
Teaming up with Mastercard’s FinSec Innovation Lab, Kima has embarked on a groundbreaking project aimed at developing a use case that links decentralized finance (DeFi) tools with conventional financial services like credit cards and bank accounts. The project, dubbed as making a ‘DeFi credit card’ a reality, has garnered support from the Israel Innovation Authority.
Kima operates as a peer-to-peer money transfer and payment protocol on a blockchain platform that operates without smart contracts, which it describes as “buggy and experimental” on its website. Looking ahead, Kima plans to expand its current protocol and unveil a mainnet and token in the second quarter of 2024. In this endeavor, FinSec will play a pivotal role by operating a Kima node and holding a significant stake in the network.
FinSec, backed by the Israel National Cyber Directorate, Finance Ministry, and Innovation Authority, actively collaborates with fintech and cybersecurity startups. The collaboration between Kima and FinSec was officially announced in July 2023, with a shared vision of bridging the gap between DeFi and traditional finance, thereby assisting users in overcoming technical and regulatory challenges associated with DeFi adoption.
Eitan Katz, Co-founder and CEO of Kima, emphasized the importance of creating a seamless bridge between blockchain networks and traditional financial systems, stating, “The only way blockchain and DeFi will become fixtures outside the niche world of Web3 is if there is an easily accessible, secure, and affordable way to bridge blockchain networks with traditional financial means.”
Kima’s expansion is gaining momentum, with six integrations and 18 new partnerships announced in 2024 alone, including ventures in Vietnam and Thailand. Additionally, Kima has joined the incubator of the artificial intelligence protocol ChainGPT, leveraging AI in its liquidity management algorithm.
Among the 16 companies supported by FinSec, Kima stands out as a frontrunner in the fintech landscape. Mastercard, known for its active involvement in blockchain development, is engaged in various projects, including tokenized settlements with U.S. banks, collaboration with crypto lending platform Nexo for a crypto-powered credit card in the European Economic Area, and research initiatives on central bank digital currency in collaboration with blockchains and payment providers.
Source: cointelegraph.com
