Huma Finance has raised $38 million in an investment round to scale its payment-financing (PayFi) platform, which is built on tokenized real-world assets (RWA). The round included $10 million in equity investment and $28 million in yield-bearing RWAs. The equity portion was led by Distributed Global, with contributions from Hashkey Capital, Folius Ventures, Stellar Development Foundation, and TIBAS Ventures. For the RWA segment, Stellar Development Foundation contributed $10 million.
- The RWA component featured multitranche bonds issued by Switzerland-based Arf Capital, wrapped into exchange-traded products under Swiss DLT laws.
- The funds will help Huma expand its platform to the Solana blockchain and Stellar’s Soroban smart-contract network.
- Tokenized RWAs are increasingly popular in blockchain, offering benefits like faster settlement and increased transparency.
Earlier this year, Huma Finance merged with Arf to focus on RWA tokenization, operating under a joint entity. The combined platform is expected to handle $10 billion in payments-financing transactions next year.
Huma Finance at Breakpoint ’24
Erbil Karaman, the co-founder of Huma finance gave a product keynote for Huma finance in the recently organised Breakpoint ’24 where he focused his talk on the following key points:
- Unlocking Financial Freedom: PayFi is designed to offer greater financial freedom by utilizing blockchains and stablecoins, creating a more accessible financial system.
- Outdated Infrastructure: Traditional financial systems cannot keep pace with the demand for payment financing, with trillions of dollars in merchant payments, trade finance, and remittances relying on outdated technologies.
- The PayFi Stack: A six-layer model encompassing transaction, currency, custody, compliance, financing, and application layers, aims to reshape the financial ecosystem.
- Impressive Growth: Huma Finance has processed $1.9 billion in PayFi transactions, experiencing 10% growth month over month, with zero credit defaults.
- Solana Integration: Huma Protocol is set to launch on Solana, bringing the most advanced real-world asset (RWA) protocol to the Solana ecosystem.
