Kima Finance, the asset-agnostic, blockchain-based peer-to-peer money transfer and payment protocol, announces the creation of the “Digital Asset and Payment Fusion Council,” a think tank dedicated to exploring solutions to overcome blockchain and asset interoperability obstacles, and speeding up fiat-digital asset transactions.
This initiative is set to guide the council's efforts to minimize intermediary roles in finance, promoting innovative payment solutions that seamlessly blend traditional finance (TradFi), blockchain, and fintech .
Despite DeFi's advancements in staking, yield farming, scalability, and accessibility, the ecosystem faced $3.3 billion in losses due to smart contract vulnerabilities in 2023.
Additionally, the inability of cross-chain protocols to effectively link the blockchain ecosystem, including crypto with traditional banking systems, remains a major hurdle.
These issues prevent TradFi organizations from fully embracing DeFi solutions, despite their potential to enhance efficiency.
The council's establishment is a strategic move by Kima as it gears up for its mainnet launch later this quarter. It aims to create a collaborative environment for leaders from both the traditional finance and digital asset sectors, working towards a breakthrough in payment interoperability between the two ecosystems.
The council will focus on interoperability use cases, research, and roundtable discussions, having already issued a request for proposal (RFP) for financial organizations to join this groundbreaking initiative.
Kima's proprietary protocol is crucial for achieving the council's vision of true interoperability. By offering a robust infrastructure, it enables financial activities across ecosystems without intermediaries or vulnerable smart contracts.
Furthermore, The protocol supports a variety of applications, from cross-border money transfers to decentralized exchanges, requiring only minimal integration changes for institutions.
Eitan Katz, CEO and Co-Founder of Kima, highlights the critical need for blockchain interoperability and a viable fiat-digital asset transaction framework.
"The lack of true blockchain interoperability […] puts a cap on the industry’s growth while limiting the potential involvement of financial institutions," Katz said.
The Digital Asset Payment Fusion Council seeks to unite industry leaders to address these challenges, fostering innovation and collaboration for a new financial era free from intermediaries.
Conclusion
In summary, Kima's creation of the Digital Asset and Payment Fusion Council is a key move to improve crypto-fiat integration. By addressing DeFi's challenges and fostering cross-financial collaboration, Kima aims to streamline and secure digital and traditional finance connections, driving forward a unified financial future.
