Kima completes the first CBDC transaction of a tokenized stock at the Bank of Israel event at the Tel Aviv Stock Exchange
Kima’s secure interoperability protocol enables transaction settlements between untethered financial systems via its patent-pending blockchain technology, eliminating potential vulnerabilities in smart contracts
Kimaits asset-agnostic, peer-to-peer money transfer and payment protocol, successfully facilitates the transfer of a tokenized share via digital shekel, demonstrating a successful use case of its cross-ecosystem interoperable delivery-vs-payment (DvP) solution. Managed by the Bank of Israel As part of a research initiative to potentially implement a central bank digital currency (CBDC), the successful purchase of a tokenized share via a digital shekel was converted into regular shekels to complete the process using Kima’s settlement layer.
To demonstrate the usefulness of his transfer protocol, Kima built an imaginary trading platform called PeerTrade, which allowed for an atomic exchange of the tokenized stock. Kima’s secure decentralized settlement layer orchestrated the transaction in place of an intermediary, linking the buyer interested in purchasing the shares using her digital crescents directly to the seller, who had a tokenized share in his wallet to make the payment on to receive into his bank account in the form of regular shekels.
To facilitate the transaction, Kima used two sets of API calls within an exploratory sandbox designed by the Bank of Israel for her digital shekel pilot program:
- Digital Shekel Lock and Unlock (Third Party Lock): The buyer’s funds were frozen until the inventory was transferred and immediately released to the seller upon completion, protecting both parties throughout the process.
- Conversion from digital shekel to regular shekel (defunding): This process converts the digital shekel payment into a usable form with purchasing power in the financial markets.
Throughout the process, Kima’s technology ensured the transaction was secure and verified. The process took place immediately, while Kima’s blockchain functioned as a decentralized escrow without intermediaries or smart contracts, additional costs, delays or unforeseen events.
Kima’s extensive infrastructure includes a Universal Payment Rail (UPR) and Liquidity Cloud. These key technologies connect fiat and digital assets across multiple blockchains, allowing transactions to occur without being tied to a specific currency or payment rate. Kima’s settlement layer is fundamental to processing its broad applications: cross-border money transfers, hybrid payments, real-world tokenized asset transactions, gaming, e-commerce and DeFi.
“Current financial systems are burdened by barriers and intermediaries that delay transactions and impose unnecessary costs,” said Eitan Katz, CEO of Kima. “For the first time, our solution has enabled an unprecedentedly efficient transaction, performing real-time delivery versus payment without the intervention of escrow or smart contracts. After securely exchanging assets, the system seamlessly performed an off-ramp action within the same atomic transaction. This was the first time a decentralized chain enabled a transaction that integrated both digital currency and fiat. The flexibility of this protocol allows citizens and financial institutions to conduct smooth transactions between assets and currencies without complex conversions or restrictions on asset types.”
About Kima
Kima is a blockchain-based, asset-agnostic decentralized settlement protocol designed to address fragmentation within crypto and traditional finance. Kima eliminates vulnerabilities through its patent-pending technology as a multi-asset class gateway, ensuring secure, efficient transactions. With its new financial primitive – the Smart Transaction – and an intuitive SDK for Web3 and Web2 apps, Kima enables interchain and hybrid transactions, expanding accessibility to a broader audience. Kima’s settlement layer supports multi-ecosystem payments, peer-to-peer trading, CeFi/DeFi services, cross-chain DEX swaps and omnichannel wallets, seamlessly bridging fiat and crypto with an emphasis on security and user accessibility. More information at https://www.kima.network.
