DeFi
Kima Network Breaks DeFi Fragmentation with Verida’s Secure Identity Technology
May 28, 2024 2:41 p.m. | 3 minutes of reading
Kima, a blockchain-based protocol designed to address fragmentation issues in the cryptocurrency and broader finance industries, announced a groundbreaking partnership with Verida, a pioneer in self-sovereign identity solutions. Backed by Mastercard’s Finsec Innovation Labs, this powerful alliance aims to revolutionize Kima’s KYC/AML processes and unlock its global expansion. By leveraging Verida’s technology, Kima can create an open infrastructure with secure user identities, paving the way for seamless cross-chain application development and broader market adoption.
This strategic partnership addresses a critical challenge for institutions entering the crypto space: navigating complex KYC/AML regulations across multiple jurisdictions. Verida’s innovative ecosystem of KYC partners and technologies provides Kima with the perfect solution, ensuring full compliance with KYC/KYB regulations, including background checks, AML checks and continuous monitoring. Kima will leverage Verida’s wallet for secure KYC credential management, giving users greater privacy control.
Kima estimates a potential 10x reduction in KYC/KYB verification costs using Verida’s technology. The streamlined KYC process will result in faster customer onboarding, reduced abandonment rates and real-time revalidation. This efficiency is crucial in a user-centric industry like DeFi, where smooth and efficient identity verification is paramount. According to Kima CEO, “Verida’s KYC solution streamlines the process for our users and alleviates the burden of manual checks on our compliance team. This partnership not only improves the user experience, but also allows us to confidently expand our DeFi sharding solution to new markets, knowing that we have a robust and compliant KYC infrastructure.
Kima will explore the integration of Verida’s KYC/KYB solutions into its transaction flows to ensure compliance and streamline user verification processes, as well as the use of Verida’s private information storage solutions to improve security and the confidentiality of its users’ data. Additionally, Kima can use Verida Wallet to manage KYC credentials and link them to transactions, improving real-world trust and reputation for financial transactions.
To improve its payments infrastructure, Verida will consider adopting Kima’s cloud and liquidity management solutions, secure messaging and universal payment rails. Both parties will collaborate on the development and implementation of a PoC to demonstrate the feasibility and benefits of the proposed integrations.
This partnership between Kima and Verida is poised to significantly improve the DeFi landscape by providing a secure, efficient and compliant framework for financial transactions. With Kima’s innovative interoperability solutions and Verida’s robust identity management technology, the future of decentralized finance looks brighter and more interconnected than ever.
By leveraging Verida’s reusable KYC credentials and Kima’s regulatory expertise, the partnership paves the way for a future where trust and compliance go hand in hand. This collaboration marks an important step towards a more efficient, user-friendly and secure financial landscape.
About Kima
The Kima protocol defragments DeFi by providing open infrastructure and building blocks for cross-chain applications: robust technology infrastructure, predefined feature blocks, tokenomics, and applications. Kima supports Know Your Transaction (KYT) and aims to expand support to multiple jurisdictions. For more information, visit Kima Network.
About Verida
Verida is a pioneering decentralized data network and self-custody wallet that puts users in control of their digital identity and data. With cutting-edge technology such as zero-knowledge proofs and verifiable credentials, Verida provides secure, autonomous storage solutions and innovative applications for various industries. Verida’s ecosystem of partners and KYC technologies is ideally suited to help Kima expand into new markets, streamlining processes and efficiencies for compliant transactions. For more information, visit Verida.
This article was written by an external contributor and does not represent the views of Benzinga and has not been edited for content. This contains sponsored content and is for informational purposes only and is not intended to constitute investment advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and coins with small market caps are inherently riskier than large cap cryptocurrencies. These tokens are subject to greater liquidity and market risks.
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