Huma Finance expects the partnership to drive payment financing transactions to reach $10 billion within the next year.
San Francisco-based Huma Finance has raised $38 million to expand its payments financing platform (PayFi). The company plans to use the funds to launch on two new blockchains, Solana and Stellar’s Soroban smart contract network, with the goal of expanding access to tokenized real-world assets (RWAs).
Huma's Dual Strategy Pushes RWAs Expansion
Huma Finance’s recent $38 million Capital round employed a dual strategy. First, $10 million came from a direct equity investment led by venture capital firm Distributed Global. Other notable investors include Hashkey Capital, Folius Ventures, Stellar Development Fund, and TIBAS Ventures, affiliated with Turkey’s İşbank.
The remaining $28 million is tied up in real-world, interest-bearing assets that are seamlessly integrated into Huma’s platform. The Stellar Development Foundation plays a key Vai , contributing $10 million.
Erbil Karaman, co-founder of Huma, Chia details about these RWAs, explaining that they are structured as multi-class bonds with different maturities, which are bundled into publicly traded products (ETPs) issued by Arf Capital, a Swiss company. This approach complies with Swiss digital ledger technology (DLT) laws, ensuring regulatory compliance.
Tokenized RWAs are rapidly gaining traction in blockchain applications. Financial institutions and digital asset companies around the world are actively exploring blockchain to enhance traditional assets such as bonds, credit, and investment funds. This shift has the potential to lead to faster transactions, increased transparency, and improved operations.
Huma’s PayFi platform focuses on solving liquidation problems in trade finance. By leveraging blockchain, the company provides a more accessible and optimized alternative to legacy systems.
Partnership to Drive $10 Billion in Payments Next Year
Huma Finance merged with Arf in early 2024, increasing its focus on tokenizing real assets (RWA). Despite the merger, both companies will continue to operate independently under a common holding company. Together, they provide a comprehensive service platform for tokenized assets. Looking ahead, Huma expects the partnership to facilitate $10 billion in payment financing transactions within the next year.
“Huma’s PayFi network is a game-changer in payments finance, bringing essential liquidation and interoperability to an industry that has long been buried in inefficiencies and access constraints,” commented Chao Deng, CEO of Hashkey Capital, a prominent investor in Huma.
Huma Finance’s recent investment round marks a major step forward in building a robust, blockchain-powered ecosystem for innovative trade finance solutions. With expansion plans for Solana and Soroban, the company is positioning itself at the forefront of this booming sector.
