- Kima enabled the first CBDC purchase of a tokenized stock.
- The decentralized settlement layer showcased the practical use of CBDCs.
A blockchain-based settlement protocol Kima Network has completed Israel’s first CBDC (digital shekel) purchase of a tokenized stock, marking a major milestone in financial innovation.
The transaction, as part of the Bank of Israel’s digital shekel pilot program, enabled direct exchanges between traditional and digital financial systems without intermediaries.
Decentralized Execution Without Intermediaries
The milestone purchase was executed on Kima’s demo trading platform PeerTrade,
Sponsored
developed to demonstrate a seamless exchange between a buyer and a seller without intermediaries.
A buyer used digital shekels (Israel’s CBDC) to purchase a tokenized share, while the seller received regular shekels converted from the digital ones into their bank account.
To facilitate the transaction, Kima utilized two sets of API calls within an exploratory sandbox designed by the Bank of Israel. The buyer’s funds were locked until the stock was transferred and immediately released to the seller upon completion, protecting both parties throughout the process. Then, digital shekels were converted into regular currency to make payments usable in traditional financial markets.
Throughout the entire process, Kima’s technology ensured a secure and verified transaction, executed instantly and seamlessly. Acting as a decentralized escrow, Kima functioned without any intermediaries or smart contracts, extra fees , delays, or unforeseen occurrences.
A Milestone for Financial Interoperability
“Today’s financial systems are weighed down by barriers and intermediaries that slow transactions and add unnecessary costs,” stated Eitan Katz, CEO of Kima.
“For the first time, our solution has enabled an unprecedentedly efficient transaction, performing real-time delivery-vs-payment without intermediary escrow or smart contracts.”
According to him, this move marked the first time when a decentralized chain has facilitated a transaction that integrates both digital currencies and fiat.
“This protocol’s flexibility empowers citizens and financial institutions to conduct smooth, cross-asset, and cross-currency transactions without the need for complex conversions or restrictions on asset type.”
Kima’s Infrastructure and Applications
Kima is a blockchain-based settlement protocol designed to bridge the gap between traditional finance and cryptocurrency, enabling secure and efficient transactions across diverse asset types. Its technology eliminates barriers between financial systems, facilitating seamless integration.
The protocol supports a wide range of applications, including cross-border payments, peer-to-peer commerce, centralized and decentralized finance (CeFi/DeFi) services, cross-chain DEX swaps, and omnichannel wallets—effectively connecting fiat and crypto in a unified, user-friendly ecosystem.
On the Flipside:
- Regulatory uncertainty: Kima’s global expansion may face challenges due to inconsistent regulations across markets.
- CBDC adoption uncertain: Kima’s success depends on broader CBDC adoption, which remains in its early stages worldwide.
Why This Matters
Kima’s integration of CBDCs with tokenized assets could reshape financial systems, providing a faster, more secure way to bridge traditional finance with digital currencies—without barriers, smart contracts, or intermediaries slowing transactions and adding costs, potentially transforming global payment infrastructure.
