- Mastercard is working with fintech firm Kima to link DeFi with traditional finance through credit cards and bank accounts
- Mastercard is developing the project through its innovation arm FinSec Innovation Lab
- The two firms first announced the project in July last year
Payment giant Mastercard has partnered with Israeli fintech firm Kima to link traditional bank accounts and credit cards to the decentralized finance (DeFi) world. The two first announced the project almost a year ago in July 2023 saying that they want to unite “web3 and TradFi for every user.” Mastercard, through its innovation arm FinSec Innovation Lab, and Kima intend to use the project to address regulatory and technical issues preventing DeFi adoption, an indication that the payment heavyweight is increasing its exploration of the decentralized space.
No Smart Contracts
In a statement, Kima said that the collaboration will help open up the siloed DFi ecosystem and enhance the user experience for individuals looking to simultaneously operate within the two finance worlds.
According to Kima, smart contracts hinder a smooth connection between the two worlds, noting that it won’t use smart contracts in its push to link the centralized and the decentralized finance space through blockchain technology.
Kiama CEO Eitan Katz said that the collaboration will result in a change in “how people interact with DeFi,” adding that the move has the blessings of the Israel Innovation Authority. The fintech firm is working on a mainnet and a token that are expected to go live by next month.
Mastercard has been increasing its interaction with blockchain technology by working with the likes of Stables to launch a virtual card that allows holders to spend stablecoins.
Visa also Exploring Blockchain Technology
The payments heavyweight has also worked with Ethereum scaling layer Polygon to create a web3 accelerator program for musicians.
Other payment firms like Visa are also expanding their interaction with the blockchain space through partnerships and individual projects.
With the Kima-Mastercard collaboration being recognized by the Israeli government, it adds traction to the project’s success.
