Kima and Mastercard Collaborate to Develop ’DeFi Credit Card’
Israeli fintech firm Kima and Mastercard’s FinSec Innovation Lab have partnered to create a ’DeFi credit card’ that integrates decentralized finance (DeFi) tools with traditional financial services. The Israel Innovation Authority backs this project. Kima, a peer-to-peer money transfer protocol without smart contracts, plans to expand its protocol and launch a mainnet and token in Q2 2024. FinSec will operate a Kima node and be a key shareholder, supported by Israeli cybersecurity and financial bodies. The initiative, announced in July 2023, aims to bridge the gap between DeFi and traditional finance, addressing technical and regulatory challenges. Kima, growing rapidly, has secured six integrations and 18 new partnerships in 2024. Mastercard is also involved in various blockchain projects, including tokenized settlements in the U.S. and a crypto credit card with Nexo in Europe.
Neutral
The initiative indicates a significant push towards integrating DeFi with traditional financial systems, but as it is still in the development phase, it does not immediately impact market prices. Historically, partnerships like this have positive long-term potential, but immediate effects on trading activities tend to be limited.