Israeli fintech company Kima, in collaboration with Mastercard’s FinSec Innovation Lab, has embarked on a groundbreaking project to create a use case for integrating decentralized finance (DeFi) tools with traditional financial services like credit cards and bank accounts. The initiative aims to realize the concept of a “DeFi credit card,” with support from the Israel Innovation Authority.
Fostering Financial Innovation
Kima, a peer-to-peer money transfer and payment protocol, seeks to enhance the user experience by bridging the gap between traditional finance and Web3 technologies. The project, supported by the Israel National Cyber Directorate, Finance Ministry, and Innovation Authority, aims to simplify DeFi adoption by addressing technical and regulatory challenges.
High-tech drives the Israeli economy. It accounts for almost 20% of the country’s GDP, compared to 10% in the USA and 6% in Europe.
So it’s critical that Dror Bin, CEO of the @InnovationAutIL (IAA), keeps the country ahead of the curve.
Learn more ⬇️ https://t.co/Z04JdiopQW
— ISRAEL21c (@ISRAEL21C) April 17, 2024
Eitan Katz, co-founder and CEO of Kima, emphasized the importance of accessibility in expanding the reach of blockchain and DeFi beyond niche markets. He stated, “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.”
Collaborative Innovation
Mastercard’s FinSec Innovation Lab, backed by various Israeli government entities, supports fintech and cybersecurity startups in pioneering financial solutions. The partnership with Kima underscores Mastercard’s commitment to blockchain development and advancing financial inclusion through innovative projects.
Expanding Horizons
Kima has demonstrated rapid growth, announcing six integrations and 18 new partnerships in 2024 alone, including ventures in Vietnam and Thailand. The company’s collaboration with the artificial intelligence protocol ChatGPT reflects its dedication to leveraging cutting-edge technologies for liquidity management and financial innovation.
Driving Blockchain Adoption
Mastercard’s involvement in blockchain projects extends beyond its collaboration with Kima. The company is actively engaged in tokenized settlements with US banks, partnering with DeFi platforms like Nexo to launch crypto-powered credit cards, and participating in research on central bank digital currencies alongside blockchain and payment providers.
The collaboration between Kima and Mastercard’s FinSec Innovation Lab signifies a significant step towards bridging the gap between traditional and decentralized finance, paving the way for innovative financial solutions in the global market.
