As a crypto investor with a background in fintech and a strong interest in decentralized finance (DeFi), I’m excited about this collaboration between Israeli fintech Kima and Mastercard’s FinSec Innovation Lab. The prospect of creating a ‘DeFi credit card’ is intriguing, as it could potentially make DeFi more accessible to a wider audience by bridging the gap between decentralized networks and traditional financial services.
Israeli fintech company Kima, in collaboration with Mastercard’s FinSec Innovation Lab, have initiated a project to explore the integration of decentralized finance (DeFi) systems and conventional financial services like credit cards and checking accounts. This endeavor aims to materialize the concept of a “DeFi credit card.” The Israel Innovation Authority is providing backing for this innovative initiative.
Kima is a money transfer and payment system that functions on a blockchain without the use of smart contracts, as stated on its website with a disclaimer of being “experimental and buggy.” The plan is to extend this protocol, introduce a mainnet, and launch a token during the second quarter of 2024. FinSec will participate by running a Kima node and becoming an essential stakeholder in the network.
The FinSec initiative, backed by the Israel National Cyber Directorate, Finance Ministry, and Innovation Authority, collaborates with emerging fintech and cybersecurity companies. An announcement regarding their partnership with Kima was made public in July 2023.
“The focus of the project is on building a connection between Decentralized Finance (DeFi) and conventional finance, enabling users to surmount the complexities and regulatory hurdles that hinder widespread adoption of DeFi.” Eitan Katz, CEO and co-founder of Kima, expressed this in a statement.
“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.”
In the past year, Kima has experienced significant growth, unveiling six new integrations and forging 18 fresh partnerships. Notably, these collaborations span new ventures in Vietnam and Thailand. Additionally, Kima is now part of the esteemed incubator of artificial intelligence chat platform ChatGPT. This innovative company employs AI technology in its advanced liquidity management algorithm.
Kima is among the 16 businesses that FinSec is backing. Mastercard is involved in multiple initiatives for blockchain technology development. In collaboration with US banks, it’s exploring tokenized settlements on a common ledger. Additionally, it has teamed up with Nexo, a DeFi platform, to launch a crypto-enabled credit card within the European Economic Area. Furthermore, Mastercard is collaborating with various blockchains and payment providers to investigate central bank digital currencies.
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2024-05-14 21:02