TL;DR
- Huma Finance has raised $38 million to expand its payments financing network (PayFi).
- The investment will enable expansion into the Stellar and Solana blockchain networks.
- Huma and Arf are projected to reach $10 billion in transactions next year.
Huma Finance, the first payments finance (PayFi) network, has managed to raise $38 million in its latest funding round.
This investment will allow the company to accelerate the expansion of its platform, which uses tokenized real-world assets (RWA) to provide instant, borderless liquidity.
Announcing $38M in funding to hyper-scale our PayFi Network! This round fuels our mission to transform global payment financing.
Read more: https://t.co/4veDkOaRz8 pic.twitter.com/plCVeZFORJ— Huma Finance 🟣 (@humafinance) September 11, 2024
The round was led by Distributed Global, with participation from Hashkey Capital, Folius Ventures, Stellar Development Foundation and TIBAS Ventures, the venture capital arm of Turkey’s largest private bank, İşbank.
A significant portion of the investment was allocated to high-yield assets on the platform.
Huma’s primary goal is to address the global liquidity gap, a problem affecting both businesses and individuals who rely on payment financing.
With credit cards funding over $16 trillion in commercial payments and trade finance facilitating $10 trillion in B2B payments, the need for more efficient solutions is urgent.
Huma seeks to leverage the strengths of blockchain to transform this sector, enabling fast, programmable money transfers on a global scale.
Huma’s merger with Arf in April this year has been a key step in its growth.
Arf, a leader in on-demand liquidity solutions for global payments, complements Huma’s vision, and together they have processed over $1.8 billion in payment financing transactions.
This figure is expected to grow exponentially to $10 billion by 2025, cementing it as one of the most prominent use cases for Circle’s USDC.
Huma Finance expands into new networks and market leadership
With the funds raised, Huma plans to expand its network to Stellar’s smart contract platform and Solana in the coming months, ensuring its PayFi network is accessible from all major payment-focused chains.
The investment also includes participation from the Stellar Development Foundation, which contributed $10 million to tokenized assets on the platform.
Hashkey Capital CEO Chao Deng highlighted the importance of Huma’s PayFi network in solving inefficiencies in the financial industry.
Likewise, Solana Foundation President Lily Liu praised Huma for its ability to create new financial markets based on the time value of money, an innovation only possible through the use of blockchain.
This year, Huma will also launch the Huma Foundation, a key organization for the decentralization of its network and global access to its solutions.
Additionally, the company is preparing to host the first PayFi Summit in collaboration with the Stellar and Solana foundations during the Token 2049 event in Singapore on September 17, where it is expected to further boost conversations and innovations in this revolutionary field.
With all these advancements, Huma is positioned as a leader in the industry of real-world assets and blockchain-based payment financing solutions.
