Fiat-to-crypto provider Simplex is teaming up with decentralized finance (DeFi) platform Kava to provide the first “Fiat-to-DeFi” ramp.
An EU-licensed financial institution, Simplex provides a fiat infrastructure for digital currencies globally. This enables users to nearly instantly exchange their funds from debit and credit cards into crypto. Simplex already provides this service for a number of leading exchanges, including Binance, Huobi and Bitpay.
Now, users of DeFi lending platforms on the Kava blockchain will also be able to benefit from these services. Ari Last, VP Business Development at Simplex, expressed his delight at being able to provide services previously only available for crypto exchanges to DeFi.
“Our partnership with Simplex provides for a simple and streamlined way to use credit or debit cards to buy KAVA and gain access to all of the assets on the Kava chain,” said Aaron Choi, Vice President Global Business Development at Kava.
DeFi lending platforms on the Kava blockchain already cater to over 250,000 users. Based on the Cosmos SDK, the Kava blockchain is able to utilize the cross-chain capabilities of the Cosmos tech stack. This enables access to assets like Bitcoin, XRP, Binance Coin (BNB) and Polkadot.
One of Kava’s premier products is a lending platform that issues Kava’s decentralized stable coin USDX. Another is its Hard Protocol which enables two-sided money markets for assets like BTC, KAVA, BNB and XRP.
Last month, Kava announced the launch of the highly anticipated Kava Swap platform in August 2021. It will be the first production-ready cross-chain liquidity hub for all DeFi applications and services. Kava Swap will also enable the aggregation of capital and the deployment across many different blockchains. It will act as a cross-chain Autonomous Market Making (AMM) protocol that gives users a method of swapping assets on different blockchains.
Between the anticipated release of Kava Swap and this integration with Simplex, the Kava ecosystem anticipates explosive growth in the near future. This is a phenomenal reversal of fortune for a project that less than a year ago nearly bottomed out.