Crypto traders and investors will find this story very bullish. Kima and Mastercard’s (NYSE:MA) FinSec Lab have launched a project to develop a DeFi credit card supported 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 operates on a blockchain that deliberately avoids smart contracts, which it labels as “buggy and experimental.” Instead, Kima focuses on expanding its existing protocol and plans to launch a mainnet and token in the second quarter of 2024. As part of the project, FinSec will operate a Kima node and hold a key stake in the network.
Supported by heavyweights like the Israel National Cyber Directorate, the Finance Ministry, and the Innovation Authority, FinSec collaborates with fintech and cybersecurity startups. The partnership with Kima, announced in July 2023, is set to bridge DeFi and traditional finance, tackling the technical and regulatory hurdles that currently impede widespread DeFi adoption.
Making DeFi Accessible
Kima co-founder and CEO Eitan Katz summed up the mission with the following statement, “The only way blockchain and DeFi will become fixtures outside the niche world of Web3 is if there is an easily accessible, secure, and affordable way to bridge blockchain networks with traditional financial means.” This project aims to make that vision a reality by developing a DeFi credit card that seamlessly integrates with existing financial systems.
In 2024 alone, Kima has announced six integrations and 18 new partnerships, including ventures in Vietnam and Thailand. They’ve also joined the ChatGPT artificial intelligence protocol incubator, leveraging AI in their liquidity management algorithm.
This latest venture with Kima underscores Mastercard’s commitment to integrating blockchain technology into mainstream finance, potentially paving the way for more widespread adoption of DeFi tools.
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