The Kima Network brings a unique approach to cross-chain payments. They do it without bridges. And they do it without smart contracts. They believe the vulnerabilities that come with smart contracts are too much for DeFi or TradFi to ever adopt long term. And now, they have an amazing new partnership to announce.
Here’s what’s new with Kima Network.
The Kima Network-Mastercard Partnership
The big partnership in question is with MasterCard. One of the big potential innovations from the project is a DeFi credit card.
📢 Exciting News! 🎉 @Cointelegraph has featured Kima Network in an insightful article about our collaboration with @Mastercard‘s FinSec Innovation Lab, which will operate Kima’s nodes on our testnet! 📢
🔍 The article dives into the Kima x FinSec partnership, explains more… pic.twitter.com/fZx4qZFhS6
— Kima Network (@KimaNetwork) May 16, 2024
Mastercard’s FinSec Innovation Lab will run nodes on Kima’s testnet. And the main goal is to bring DeFi and everyday TradFi services like bank accounts, debit cards, and credit cards together in the way we know is possible. Yet, it hasn’t been done yet. Kima and Mastercard hope to be the first. Both the mainnet and full token access on exchanges (they had their TGE) is expected any day.
About Kima Network
We’ve talked about Kima before and how innovative their approach is to cross-chain payments. We have not seen any protocols try to manage cross-chain payments without either bridges or smart contracts. Until now. Because Kima does. They use a combination of vaults and liquidity rebalancing to allow any payment on-chain and even fiat money from bank accounts.
Here is a visual of how they describe it.
As you can see with their vaults they act almost like Western Union or a local Forex exchanger does. They need to have USD, GBP, CAD, and other currencies physically on-hand when people want to exchange money. And Kima does this with their vaults. In this example, you see a vault for ETH and one for a bank account and through funds available and liquidity rebalancing, the payment gets where it needs to go.
Use Cases for Kima Network
As one of the use cases says clearly on their website. This eliminates the need for only chain-specific payments. Imagine if you sell a product and for whatever reason, you only accept USDC payments on Polygon. But if my preferred network is Solana, I can pay with my native USDC there while the seller receives it in Polygon as he needs. Or even better, I can pay with a GBP debit card and the seller still receives USDC.
The use cases for this are endless. And the lack of smart contract vulnerability issues means that TradFi firms can try DeFi with more confidence. Trading and the RWA sectors are already benefitting from this change.
Conclusion
Kima has a native token $KIMA with major exchange listings coming soon. This is a small project solving a big problem in a new way. No bridges and no smart contracts. Yet, enabling cross-chain payments. We’ve already seen that payments is the best use case for crypto so far. And with projects like Kima, they will continue to improve and get more adoption over time.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. This post is sponsored by Kima Network.
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