Huma Finance Secures $38M to Expand Blockchain PayFi Platform

Huma Finance Secures $38M Funding: Expanding PayFi to SOL and Stellar

Huma Finance has successfully closed a $38 million financing round, comprising $10 million in equity investment and $28 million in real-world assets (RWA) investment. This strategic funding will be instrumental in expanding Huma's blockchain-based payment-finance (PayFi) platform, which aims to revolutionize trade financing by addressing liquidity needs with faster settlements.

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Key Investors and Their Contributions

The $38 million financing round for Huma Finance was led by Distributed Global, with significant participation from Hashkey Capital, Folius Ventures, Stellar Development Foundation, and TIBAS Ventures. The Stellar Development Foundation notably contributed $10 million to the RWA component. 

The RWA investment includes multitranche bonds issued by Arf Capital under Swiss DLT laws. These tokenized assets promise operational efficiencies and faster settlements. Erbil Karaman, Huma's co-founder, noted that the funds would help expand Huma's PayFi platform to the Solana blockchain and Stellar's Soroban smart-contract network in the coming months.

Huma Finance's PayFi Platform Poised to Transform Trade Financing

Huma Finance's blockchain-based PayFi platform aims to revolutionize trade financing by offering efficient and accessible liquidity solutions with faster settlements and operational efficiencies. Following its merger with Arf, Huma focuses on tokenizing real-world assets (RWAs) under a joint holding entity, projecting to handle $10 billion in payments-financing transactions next year. 

This innovative approach leverages tokenized RWAs, attracting global financial institutions to adopt blockchain technology for bonds, credit, and funds, promising quicker settlements and greater transparency. Chao Deng, CEO of Hashkey Capital, praises Huma’s PayFi network for addressing industry inefficiencies and limited access, signaling a paradigm shift in payment financing.

Conclusion

Huma Finance's $38 million funding will significantly expand its PayFi platform, enhancing trade financing with blockchain technology. By leveraging tokenized real-world assets, Huma aims to revolutionize the industry, offering faster settlements, increased transparency, and greater efficiency, marking a paradigm shift in payment financing and addressing long-standing inefficiencies.

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