Kima and FinSec Innovation Lab join forces

Kima has partnered with FinSec Innovation Lab receiving a grant from the IIA to fund an initiative to connect decentralised finance (DeFi) applications with fiat systems

Kima has partnered with FinSec Innovation Lab receiving a grant from the IIA to fund an initiative to connect decentralised finance (DeFi) applications with fiat systems. According to the official press release, the collaboration between Kima and FinSec is set to focus on developing a use case linking traditional financial instruments, such as bank accounts and credit cards, to DeFi protocols, platforms, and services.

Decentralised finance, known for its innovative use of blockchain and digital assets, faces challenges like technical issues, money problems, and rules that limit its reach. This means DeFi apps turn into fragmented liquidity silos locked within the boundaries of the host network and smart contracts. And because there is no convenient way for DeFi to connect with mainstream financial systems, using it can lead to a poor and complicated user experience.

Starting in late 2023, the grant from the Israel Innovation Authority (IIA) is intended to power Kima and FinSec to utilise its infrastructure to explore and develop methods to easily link everyday bank accounts and credit cards to a wide range of DeFi tools. Moreover, the collaboration aims to expand on Kima’s existing payment protocol—which facilitates direct money transfers via blockchain and bank accounts without using smart contracts. As part of the project, FinSec will operate a Kima node and serve as a key stakeholder in its burgeoning cross-ecosystem network.

FinSec’s participation in the network further bolsters Kima’s payment protocol and expansive settlement layer ahead of its upcoming token and mainnet launches slated for Q2 of 2024. Kima’s settlement layer is built to handle wide-ranging applications including cross-border transfers, crypto payment rails, DeFi borrowing and lending, gaming, RWA marketplaces, wallets, and exchanges. About the companies Kima is an asset-agnostic, blockchain-based decentralised settlement protocol intended to address fragmentation in crypto and the broader financial space.

By introducing a new financial primitive – the Smart Transaction and an easy-to-use SDK built for Web3 and Web 2.0 apps, Kima opens access to new audiences by enabling interchain 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 provides a way to connect fiat and crypto while emphasising security and accessibility. The FinSec Innovation Lab is a collaborative initiative powered by Mastercard, the Israel Innovation Authority, the Israel National Cyber Directorate, and the Israeli Ministry of Finance.

Established in 2020, the lab advances innovations in financial and cybersecurity technology for the global payments and energy ecosystems. FinSec Innovation Labs emphasises information and cyber security, fintech, transaction detection, authentication, digital security, smart cities, and financial inclusion work. .

May 13, 2024 14:41
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