San Francisco-based Huma Finance has raised $38 million to expand its payments finance platform. The company is using the funding to invest in Solana and Stellar $0.092561’s Soroban smart contract network, a move aimed at increasing the use of tokenized real-world assets (RWAs).
Huma’s Dual Strategy Drives RWA Expansion
Huma Finance’s $38 million fundraising is following a dual strategy. First, $10 million was raised through a direct equity investment led by venture capital firm Distributed Global. Other notable participants include Hashkey Capital, Folius Ventures, Stellar Development Foundation and TIBAS Ventures, which is affiliated with Türkiye İş Bankası.
The remaining $28 million is tied to real-world assets that generate returns integrated into Huma’s platform, with the Stellar Development Foundation contributing $10 million.
Huma co-founder Erbil Karaman provided information about these RWAs, noting that they are structured as multi-layered bonds with different maturities and packaged as exchange-traded products (ETPs) issued by Arf Capital. This approach complies with Switzerland’s digital ledger technology (DLT) laws.
Partnership Aims to Pay $10 Billion
Huma Finance is focused on tokenizing real-world assets by merging with Arf in early 2024. Despite the merger, both companies continue to operate independently and offer an integrated platform under a common holding company. Huma expects the partnership to generate $10 billion in payments finance transactions over the next year.
Chao Deng, CEO of Hashkey Capital, stated that Huma’s PayFi network creates a major paradigm shift by bringing needed liquidity and interoperability to an industry that has long been plagued by inefficiencies and limited access.
Huma Finance’s latest investment round marks a significant step towards establishing a robust blockchain-enabled ecosystem to improve trade finance solutions. With expansion plans for Solana and Soroban, the company is positioned as a pioneer in this emerging space.
Huma Finance has raised $38 million to expand its payments finance platform, and plans to use the funds to migrate to Solana and Stellar’s Soroban networks. The company’s funding consists of both direct equity investments and funds tied to yielding real-world assets. With this expansion, Huma aims to capitalize on the opportunities presented by blockchain technology in the trade finance space.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
