In a groundbreaking move, Israeli fintech company Kima is collaborating with Mastercard's FinSec Innovation Lab to pioneer the development of a decentralized finance (DeFi) credit card. This project aims to merge the worlds of blockchain-based finance and conventional banking services. Supported by the Israel Innovation Authority, this initiative marks a significant step toward integrating DeFi tools with everyday financial products like credit cards and bank accounts.

Kima, known for its peer-to-peer payment protocols operating on a blockchain devoid of smart contracts, has plans to broaden its platform. The company describes smart contracts on its website as "buggy and experimental." In its ambitious roadmap, Kima intends to launch a mainnet and its own token by the second quarter of 2024. FinSec, a hub supported by various Israeli national bodies including the Cyber Directorate and the Finance Ministry, will not only operate a Kima node but also become a major shareholder in this expanding network.

This partnership, announced in July 2023, focuses on developing a seamless connection between DeFi and traditional financial systems. It aims to tackle the technical and regulatory challenges currently hindering the widespread adoption of DeFi solutions. "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," stated Eitan Katz, co-founder and CEO of Kima.

Kima's growth trajectory in 2024 has been impressive, with six integrations and 18 new partnerships, extending its reach into markets like Vietnam and Thailand. Additionally, Kima has embraced artificial intelligence, employing AI in its liquidity management algorithms and joining the incubator for the AI protocol, ChainGPT.

As one of the 16 companies under FinSec's wing, Kima, with Mastercard's backing, is at the forefront of blending blockchain technology with traditional finance, exemplifying innovation in the evolving landscape of global finance.