DeFi
Kima and FinSec Innovation Lab join forces
Kima joined forces with FinSec Innovation Lab receive a grant from the IIA to fund an initiative to connect decentralized finance (DeFi) applications to fiat systems.
According to the official press release, the collaboration between Kima and FinSec is expected to focus on developing a use case connecting traditional financial instruments, such as bank accounts and credit cards, to DeFi protocols, platforms and services .
Decentralized finance, known for its innovative use of blockchain and digital assets, faces challenges such as technical issues, financial issues and rules that limit its reach. This means that DeFi applications are turning into fragmented liquidity silos, locked within the confines of the host network and smart contracts. And since there is no practical way for DeFi to connect to traditional financial systems, its use can lead to a poor and complicated user experience.
Starting in late 2023, the grant from the Israel Innovation Authority (IIA) aims to enable Kima and FinSec to use its infrastructure to explore and develop methods to easily link bank accounts and credit cards from everyday to a wide range of DeFi tools.
Additionally, the collaboration aims to expand Kima’s existing payment protocol, which facilitates direct money transfers via blockchain and bank accounts without the use of smart contracts.
As part of the project, FinSec will operate a Kima node and serve as a key stakeholder in its growing cross-ecosystem network. FinSec’s participation in the network further strengthens Kima’s payment protocol and expanded settlement layer ahead of its upcoming token and mainnet launch planned for the second quarter of 2024.
Kima’s settlement layer is designed to handle a wide range of applications, including cross-border transfers, crypto payment rails, DeFi borrowing and lending, gaming, RWA markets, wallets and exchanges.
About companies
Kima is an asset-agnostic, blockchain-based decentralized settlement protocol intended to combat the fragmentation of the crypto and broader financial space. By introducing a new financial primitive – the Smart Transaction and an easy-to-use SDK designed for Web3 and Web 2.0 applications, Kima opens access to new audiences by enabling cross-chain and hybrid transactions. With a settlement layer supporting multi-ecosystem payments, peer-to-peer commerce, CeFi/DeFi services, cross-chain DEX swaps and omnichannel wallets, Kima offers a way to connect fiat and crypto while emphasizing safety and accessibility.
The FinSec Innovation Lab is a collaborative initiative led by Mastercard, the Israel Innovation Authority, the Israel National Directorate of Cybersecurity and the Israel Ministry of Finance. Established in 2020, the lab advances financial technology and cybersecurity innovations for the global payments and energy ecosystems. FinSec Innovation Labs focuses on information security and cybersecurity, fintech, transaction detection, authentication, digital security, smart cities and financial inclusion work.