DeFi

Mastercard and Kima take another step towards a “DeFi credit card”

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Kimathe peer-to-peer money transfer and payment protocol, has taken a significant step forward in the fintech landscape by joining the FinSec Innovation Lab. This accelerator, led by Mastercard, focuses on advances in financial technology and cybersecurity. In addition, Kima obtained a grant from Israel Innovation Authority (IIA) to support an ambitious project aimed at connecting decentralized finance (DeFi) applications to traditional fiat systems.

The collaboration between Kima and FinSec aims to address a critical challenge in the DeFi ecosystem: the lack of integration with traditional financial instruments such as bank accounts and credit cards.

Currently, DeFi protocols often operate in isolation, leading to fragmented liquidity and a convoluted user experience. By connecting traditional financial instruments with DeFi platforms, Kima and FinSec aim to create a seamless bridge that improves accessibility and usability for everyday users.

Scheduled to begin in late 2024, the initiative will build on Kima’s existing payment protocol, which facilitates direct money transfers via blockchain without the need for smart contracts. This infrastructure will be instrumental in developing new methods for connecting bank accounts and credit cards to a variety of DeFi tools, making these innovative financial instruments more accessible to a wider audience.

Under this groundbreaking project, FinSec will operate a Kima node and become a crucial player in the evolving cross-ecosystem network. This involvement is expected to strengthen Kima’s payment protocol and settlement layer ahead of the planned token and mainnet launch in Q2 2024. Kima’s settlement layer is designed to support a diverse range of applications, including cross-border transfers, crypto payment rails, DeFi borrowing and lending, gaming, real-world asset (RWA) markets, wallets and exchanges.

Eitan Katz, CEO and co-founder of Kima, said: “Kima and FinSec are embarking on an exciting journey together – one that we are confident will lead to major advancements in the way people interact with DeFi. »

“The only way for blockchain and DeFi to become mainstream outside of the niche world of Web3 is to find an easily accessible, secure, and affordable way to bridge blockchain networks with traditional financial means,” Katz noted.

Sidney Gottesman, CEO of FinSec, highlighted the innovative potential of the collaboration. “We are excited to have Kima as a startup in the FinSec Lab and support the initiative to seamlessly connect decentralized finance (DeFi) applications to fiat systems. We are excited to see the development of Eitan and his team and happy to see the success of their innovative solutions.

This partnership marks a significant milestone in the fintech and DeFi sectors, promising to provide more integrated and user-friendly financial solutions that bridge the gap between decentralized and traditional finance.

Read also: Mastercard works with crypto companies to bring digital assets mainstream

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