Can You Bring Crypto And Fiat Together Without Smart Contracts? Kima Says Yes

One internal roadblock that blockchain as an industry can’t seem to consolidate is an inability to simplify fiat and cross-network transfers. While the advent of smart contracts did provide a solution for Ethereum-based blockchains, they come along with serious blind spots and limitations.

For one, its security gaps accounted for more than $3.1 billion in stolen funds from hacks in 2022. Additionally, the lack of network support for Bitcoin immediately diminishes the scope of what smart contracts can realistically achieve. In order for crypto to function as a viable currency option, there must be an alternative to streamline how everyday users interact with it for common financial tasks.

Kima makes common financial services, such as money transfers, transactions, and escrow services between blockchains and bank accounts as seamless as possible by using funds from anywhere. It does this by using key building blocks to bolster settlement security directly in its protocol, which includes external accounts, TSS and trusted execution environments, efficient liquidity management algorithms, and opt-in compliance for crypto and fiat transactions.

In addition to the launch of its SDK, Kima also joins FinSec Innovation Lab, a joint venture by Mastercard and Enel X. Kima goes back to basics by leveraging blockchain wallets and direct peer-to-peer transfers to simplify crypto-fiat accessibility and elevate cross-network functionality to operate as an asset-agnostic financial settlement layer.

By building its protocol around direct money transfers via blockchain addresses and bank accounts, rather than smart contracts, Kima eliminates technical dependencies and vulnerabilities while welcoming blockchains and traditional financial institutions whose infrastructures are incompatible with smart contracts.

“Crypto and fiat cannot move forward as partners without addressing the number of complicated intermediaries needed to bridge them, due to their complex regulatory and technical landscapes,” says Eitan Katz, CEO of Kima. “Simply put, our protocol aims to use the blockchain for what it does best: removing intermediaries. This is what will break the silos that impede progress and create unprecedented levels of efficiency and security.”

Kima’s SDK creates an infrastructure for dApp developers, institutional Web3 builders, Web 2.0 apps, and fintech companies, empowering traditional institutions to begin bridging crypto and fiat. Unlike other crypto bridges, such as centralized swaps, and onramp-offramp services, Kima’s Smart Transaction primitive is not bound to exchanges or specific networks, ensuring minimized trust assumptions while maximizing efficiency. As the foundation of its offering, Kima’s settlement layer is built to handle wide-ranging applications including cross-border transfers, eCommerce, borrowing and lending, gaming, NFT marketplaces, wallets, and decentralized exchanges.

“Launching our SDK indicates a step toward making cross-ecosystem financial interaction as seamless, secure, and transparent as possible, to make it as ubiquitous as PayPal or Apple Pay,” added Katz.

FinSec Innovation Lab grants Kima the capability to conduct complex research in evolving financial systems. The agreement garners critical support from Mastercard and Enel X to expand Kima’s beta program with financial institutions, launch pilot projects, and develop progressive technology. The Lab acts as an accelerator for startups by fostering success in both commercial and technological areas.

Speaking about onboarding Kima, Sidney Gottesman, CEO of FinSec Innovation Lab said “We are thrilled to welcome Eitan Katz and Kima to our lab and we look forward to our joint journey. Digital Assets is one of our focus areas and made Kima a natural fit for the lab.“