Kima enables secure, decentralized tokenized stock transfers via digital shekel, eliminating middlemen and reducing transaction costs efficiently.
Kima, a peer-to-peer money transfer and payment protocol, has successfully facilitated the transfer of a tokenized stock via digital shekel. This achievement demonstrates the effectiveness of Kima’s cross-ecosystem interoperable delivery-vs.-payment (DvP) solution. The initiative was part of a research project led by the Bank of Israel. In addition, it is exploring the potential adoption of a central bank digital currency (CBDC).
In the previous week, Kima successfully closed a transaction with the purchase of a tokenized share using digital shekels. Once the stock was bought, the shekels were converted into regular shekels using Kima’s settlement layer to finalize the transaction. This process was made possible directly through Kima’s technology, which had no middlemen in the process. To illustrate the atomic swap of the tokenized stock, a fake trading platform called PeerTrade was developed.
Due to Kima’s decentralised settlement layer, the entire transaction was completed securely. The buyer paid with digital shekels for the tokenized share, and after the transfe,r the regular shekels went to the seller. This was done through two API calls into the Bank of Israel’s investigative sandbox for the digital shekel pilot.
Kima Revolutionizes Payments with Digital Shekel Solutions
The first API was Digital Shekel Lock and Release which locked the buyer’s funds to keep them safe until the stock was moved. When the construction was done, the money was paid directly to the seller. The second API called Digital Shekel to Regular Shekel Conversion exchanged the digital shekels for regular shekels that are usable by the seller.
Kima’s solution did away with middlemen, blockchain smart contracts and additional charges, thus sealing the deal in 10 minutes. Kima’s infrastructure encompasses the Universal Payment Rail (UPR) as well as the Liquidity Cloud. These technologies enable to link fiat and digital currencies within different blockchains to perform transactions. This system does not focus on particular currencies or payment rates, making it more flexible. Therefore, Kima can facilitate several use cases, including international remittances, blended payments, asset-backed transactions, gaming, retail, and financial services.
Eitan Katz, the CEO of Kima, explained the need for their solution. He said that conventional financial systems have constraints and other entities that prolong and incur expenses on transactions. Currently, the technology offered by Kima gets rid of these limitations and allows for the actualization of decentralized, real-time transactions that do not require conversion and are not limited by the asset type.
In related news, Israel is facing challenges with taxing digital currencies. A recent report highlighted significant tax revenue losses due to issues in regulating crypto transactions.
