DeFi
Bridging Finance: DeFi credit card project from Kima and Mastercard
Cryptocurrency traders and investors will find this story very optimistic. Kima and Mastercard (NYSE:MA) FinSec Lab has launched a project to develop a DeFi credit card backed by the Israel Innovation Authority. This partnership hopes to make decentralized finance (DeFi) tools as accessible and user-friendly as your everyday credit card.
Deliberately avoiding smart contracts
Kima, known for its peer-to-peer money transfer and payment protocol, is stepping up its game. The company runs on a blockchain that deliberately avoids smart contracts, which it calls “buggy and experimental.” Instead, Kima is focused on expanding its existing protocol and plans to launch a mainnet and token in Q2 2024. As part of the project, FinSec will operate a Kima node and hold a key stake in the network .
Backed by heavyweights like the Israeli National Directorate of Cybersecurity, the Ministry of Finance and the Innovation Authority, FinSec collaborates with fintech and cybersecurity startups. The partnership with Kima, announced in July 2023, aims to bridge DeFi and traditional finance, addressing the technical and regulatory barriers that currently hinder the widespread adoption of DeFi.
Making DeFi Accessible
Kima co-founder and CEO Eitan Katz summed up the mission with the following statement: “The only way blockchain and DeFi can become mainstream outside of the niche world of Web3 is if there is a way easily accessible, secure and affordable to connect blockchain networks. with traditional financial means. This project aims to make this vision a reality by developing a DeFi credit card that seamlessly integrates with existing financial systems.
In 2024 alone, Kima announced six integrations and 18 new partnerships, including projects in Vietnam and Thailand. They also joined AI protocol incubator ChatGPT, leveraging AI in their liquidity management algorithm.
This latest collaboration with Kima highlights Mastercard’s commitment to integrating blockchain technology into traditional finance, potentially paving the way for broader adoption of DeFi tools.
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