Huma Finance Secures $38M Funding to Revolutionize Payment Financing with Tokenized Real-World Assets

Huma Finance, a leading fintech company, has announced the successful completion of a $38 million investment round to bolster its payment-financing (PayFi) platform built on tokenized real-world assets (RWAs). The funding, which includes both equity and RWA investments, will enable Huma to expand its innovative solutions and drive the adoption of blockchain technology in the financial sector.

Unlocking the Power of Tokenized Assets for Efficient Payment Financing

Equity Investment and Yield-Bearing RWAs

The $38 million investment round was comprised of two key components: a $10 million equity investment and $28 million in yield-bearing RWAs on Huma's platform. The equity investment was led by venture capital firm Distributed Global, with significant participation from prominent players in the crypto and blockchain space, including Hashkey Capital, Folius Ventures, Stellar Development Foundation, and TIBAS Ventures, the venture arm of Turkey's largest private bank, İşbank.For the RWA component, Stellar Development Foundation was the largest participant, dedicating $10 million to the initiative. These RWAs were multitranche bonds of varying maturities, wrapped into exchange-traded products issued by Switzerland-based Arf Capital under Swiss DLT laws.

Expanding to Solana and Stellar's Soroban

The investment will enable Huma to expand its platform to the Solana blockchain and Stellar's Soroban smart-contract network in the coming months. This move will further enhance the company's reach and provide users with greater flexibility and interoperability in their payment-financing solutions.

Addressing Liquidity Needs in Trade Financing

Huma's PayFi platform aims to address the liquidity needs of trade financing by leveraging blockchain technology. The platform claims to offer more efficient and accessible services compared to traditional alternatives, providing essential liquidity and interoperability to an industry long plagued by inefficiencies and limited access.

Merger with Arf and Projected Growth

Earlier this year, Huma Finance merged with cross-border payments firm Arf to focus on the tokenization of RWAs. The two companies now operate independently under a joint holding entity, offering a full-stack tokenized-asset platform. The combined entity is projected to hit $10 billion in payments-financing transactions next year, showcasing the immense potential of Huma's innovative solutions.

Transforming the Payment Financing Landscape

Chao Deng, CEO of Hashkey Capital, one of the investors in Huma, highlighted the significance of the company's PayFi network, stating, "Huma's PayFi network marks a paradigm shift in payment financing, bringing essential liquidity and interoperability to an industry long plagued by inefficiencies and limited access."The successful funding round and Huma's strategic initiatives demonstrate the growing demand for blockchain-based solutions in the financial sector. By leveraging tokenized RWAs, Huma is poised to revolutionize the payment-financing landscape, offering more efficient, accessible, and transparent services to businesses and individuals alike.