Bridging Crypto and Fiat: Kima’s Innovative Direct Transfer System

Kima joins FinSec Innovation Lab, a joint venture by Mastercard and Enel X, for projects advancing research in fintech.

Man about to cross the bridge holding a fiat coin.
Created by Kornelija Poderskytė from DailyCoin
  • Kima launched its SDK to create a unified financial settlement layer.
  • Its approach eliminates the need for smart contracts. 
  • Kima also joined FinSec Innovation Lab by Mastercard and Enel X.

In a significant move towards simplifying crypto-fiat accessibility, Kima, an asset-agnostic peer-to-peer money transfer and payment protocol, has launched its SDK. This development comes as Kima joins forces with FinSec Innovation Lab, a joint venture by Mastercard and Enel X, to advance research and development in financial technology and cybersecurity

Kima’s SDK and Its Impact on Crypto-Fiat Accessibility

On Tuesday, June 6, 2023, Kima launched its software development kit (SDK) for a unified financial settlement layer. The new protocol would enable direct money transfers via blockchain addresses and bank accounts rather than smart contracts

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Kima asserts that DeFi protocols accounted for 82 percent of the nearly $4 billion in stolen crypto funds from hacks in 2022. By eliminating the need for smart contracts, Kima hopes to bypass the security issues they pose to facilitate cross-network transfers. 

The firm’s approach brings together blockchains and traditional financial institutions whose infrastructures are incompatible with smart contracts. Unlike other crypto bridges, such as centralized swaps and on-ramp/off-ramp services, Kima’s smart transactions are not tied to specific networks or exchanges. 

The launch of Kima’s SDK for crypto-fiat payments coincides with the company joining FinSec Innovation Lab, a joint venture of Mastercard and Enel X. This partnership will support projects advancing research and development in financial technology and cybersecurity.

On the Flipside

  • While Kima’s approach simplifies crypto-fiat accessibility, the broader adoption of this technology will require significant regulatory and technical advancements. 
  • The success of Kima’s SDK will largely depend on its acceptance and integration by traditional financial institutions and blockchain networks. 

Why This Matters

Kima’s SDK launch stands to simplify crypto-fiat transactions and therefore has the potential to play a key role in onboarding institutions to the crypto industry, a crucial step for widespread adoption. 

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Read more about Decentralized Finance (DeFi) and its potential: 

What Is DeFi? Uncovering the Mysteries of Decentralized Finance

Read more about UK’s latest regulations on social media promotion: 

UK Goes After Crypto ‘Finfluencers:’ FCA Cracks Down on Promotions

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.