Kima Unveils Next-Gen Financial Infrastructure to Bridge TradFi and DeFi

Kima Network, known for revolutionizing financial interoperability, is ensuring secure and seamless payments and liquidity. Kima has recently unveiled its Next-Gen financial infrastructure through its social media X post. As per the details provided by the firm, this advanced financial infrastructure is aimed at bridging traditional finance (TradFi) and decentralized finance (DeFi) to serve its user base in terms of seamless payments and liquidity. For the said purpose, Kima is employing significant features like Universal Payment Rail (UPR), Liquidity as a Service (LaaS), and Delivery vs. Payment (DvP).

UPR Offers Seamless Fiat and Crypto Transfers at a Global Level

Kima has developed the Universal Payment Rail (UPR), a single platform for transacting fund transfers across bank systems and blockchain networks. With UPR, users can transfer funds to fiat and crypto channels through a single API to conduct cross-chain, cross-border, and cross-currency payments. It supports both traditional and digital currencies like stablecoins, tokenized deposits, and CBDCs on private chains.

Users and institutions can process transactions between banks and blockchains with no third party in between by integrating the infrastructure directly with bank accounts and fiat payment networks. UPR is cross-platform deployable and compatible with permissioned and permissionless blockchains. The system provides one less smart contract, which means it has one less vulnerability and also less transaction complexity.

LaaS Offers Cross-Platform Liquidity Management

Kima is a Liquidity as a Service (LaaS) simplifies liquidity management over both fiat and crypto. Users can interact with a decentralized pool of liquidity providers which enables businesses to execute transactions without having to hold large reserves of multiple assets. With multi asset and multi chain access, LaaS smooths out operations across the financial networks.

With Know Your Transaction (KYT) and Anti Money Laundering (AML) traits all rolled into one, LaaS provides 100% compliance and bolsters operational security as well. It helps reduce asset risk and trade execution via narrowed spreads while simplifying multi-asset support. The platform offers faster and less complex liquidity access to users for a better experience.

DvP Enables Real-Time Settlement of Real-World Assets

Kima’s Delivery vs Payment (DvP) mechanism enables real-time settlement of tokenized assets on Kima without intermediaries. DvP is enabled using decentralized escrow accounts that allow for atomic transactions; asset delivery and payment can’t happen at the same time. This structure eliminates the need for third-party oversight, thereby minimizing operational risk.

This system facilitates seamless interaction between blockchains for transactions of fiat, stablecoins, and tokenised real-world assets. Kima participated in the Bank of Israel’s Digital Shekel challenge to demonstrate the ability to settle transactions between Digital and Fiat currencies. In addition, DvP allows greater liquidity, market trading of securities, and full transaction traceability via blockchain records.