Mastercard Partners with Kima to Develop DeFi Credit Card

Mastercard Partners with Kima to Develop DeFi Credit Card

In its advanced communication, the Israel-based fintech company Kima revealed plans to collaborate with the Mastercard Innovation Lab. The partnership with the tech giant company will support Kima in developing a decentralized finance (DeFi) credit card.

The two intend to marry the DeFi with traditional finance tools such as bank accounts and credit cards. In this ambitious project, the Kima and Mastercard plans to bring the DeFi credit cards into reality.

Israel Fintech Kima Developing DeFi Credit Cards

Based on the uniqueness of the proposed DeFi credit card, the Israel Innovation Authority (IIA) pledged to support the project.

The IIA will offer the grant to support Kima’s DeFi credit card to materialize. Having been ranked among the fast-paced fintech companies in Israel, Kima plans to provide a buggy and experimental experience to redefine the financial sector.

Kima offers blockchain-oriented peer-to-peer (P2P) transfers and payment protocols that do not require intelligent contracts.

Kima has collaborated with private and public companies to attain the end goal. The Kima team recently joined the FinSec Innovation Lab facilitated by Mastercard.

Mastercard Partners with Kima to Boost DeFi Adoption

The primary objective of the accelerator program is to promote the growth of fintech and stimulate innovation. Also, the accelerator program will encourage the development of cybersecurity technologies.

With the collaboration with the Mastercards, Kima plans to expand the existing protocol by integrating advanced technologies.

The fintech company plans to launch a mainnet and digital token by Q2 2024. In the upcoming launch of the mainnet, the Kima team will mandate FinSec as a key shareholder.

FinSec will operate Kima’s new network and enhance mainnet efficiency in this case. The collaboration with FinSec enables Kima to consult other government agencies since the organization has worked closely with the Israel National Cyber Directorate, Finance Ministry and Innovation Authority.

FinSec and Kima’s collaboration was announced last July, and the two plans to redefine the Israeli fintech sector. The two companies plan to bridge the gaps between DeFi and traditional finance (TradFi).

Citing the regulatory challenges facing the digital space, Kima and FinSec will invest in addressing the technical challenges of the DeFi sector.

The duo plans to focus on promoting the growth of the DeFi sector. An announcement conveyed by the chief executive of Kima Eitqn Katz projected that the blockchain and DeFi sectors will perfectly blend outside Web3  in the future.

However, for DeFi and blockchain to become fixtures, the  CEO urged the developers to prioritize improving the accessibility, security, and affordability of the two technologies.

Mastercard Invest in Crypto Technology

The executive confirmed that Kima was experiencing steady growth. The fintech company boasts six major developments and has entered into strategic partnerships with around 18 best-performing companies.

According to the report, most of Kima’s partners are based in Vietnam and Thailand. To bring innovation to the fintech industry, Kima actively participates in the artificial intelligence (AI) incubator programs and leverages this technology in its liquidity management algorithm.

The drive to innovation in the fintech sector Kima ranks among the 16 companies partnering with FinSec to work on this area.

Industrial heavyweights have demonstrated interest in these technologies due to the benefits of crypto and blockchain tech.

A review of the Mastercard website shows that the tech company supports various blockchain development projects. Mastercard has partnered with giant American banks to support the tokenization of real-world assets (RWA).

Recently, the Mastercard team partnered with Nexo to develop blockchain-inspired credit cards. Also, Mastercard is Collaborating with central banks to support the development of digital versions of fiat currencies.

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