Israeli fintech firm Kima and Mastercard’s FinSec Innovation Lab have initiated a project to link decentralized finance (DeFi) tools with traditional financial services, aiming to make a "DeFi credit card" a reality. Supported by the Israel Innovation Authority, the project seeks to bridge DeFi and traditional finance, addressing technical and regulatory barriers to wider adoption. Kima's protocol, which operates a blockchain without smart contracts due to their experimental nature, will be expanded with a mainnet and token launch scheduled for Q2 2024. FinSec, a key shareholder in Kima's network, will operate a Kima node and is backed by the Israel National Cyber Directorate, Finance Ministry, and Innovation Authority.
Kima, known for its peer-to-peer money transfer and payment protocol, is rapidly expanding with six new integrations and 18 partnerships in 2024, including ventures in Vietnam and Thailand. Additionally, it has joined the ChainGPT incubator, utilizing AI in its liquidity management algorithm. FinSec supports 16 companies and collaborates with Mastercard on various blockchain projects, such as tokenized settlements with US banks and a crypto-powered credit card in the European Economic Area. The collaboration with Kima underscores the commitment to creating accessible, secure, and affordable bridges between blockchain networks and traditional financial systems.
