Huma Finance, a blockchain-based payment financing network, is launching on Solana to improve its “instant liquidity solution.” The launch coincides with a campaign offering higher yields for accredited investors.
The so-called “PayFi” protocol has processed over $2 billion in transactions this year, with zero credit defaults. Following a merger with cross-border payments firm Arf, it is reportedly on target to hit $10 billion in transaction volume next year.
Huma uses blockchain tech to offer on-chain credit and payment financing for assets like transferable tokens, Treasurys, Euro bonds, corporate credit and equities. The idea is to address inefficiencies in traditional finance systems, such as high fees and slow processing times.
Launching on Solana will help the project expand its PayFi network and further into the “decentralized infrastructure” (a.k.a. DePIN) space.
“We are about to witness an explosion of activity in the decentralized payment financing space as protocols race to become not just more capable, but also more accessible and user-friendly,” co-founder Erbil Karaman told The Block, noting that cryptocurrencies could be “written off as a frustrating experience” if projects cannot solve longstanding UX/UI issues.
“As the masses enter the space expecting to find the future of currency, we must ensure we meet their expectations. Instant settlements, seamless transaction processing, and markets need to function at least as well as–if not better than–their TradFi counterparts,” Karaman said. “The work Huma is doing to support real-time payments is essential to prevent cryptocurrency from collapsing under the weight of its own potential.”
Karaman added that the “incoming crypto-friendly administration” could drive a new swath of users to crypto. Huma, initially launched on Stellar, has partnered with stablecoin issuer Circle, infrastructure provider Fireblocks, leading Solana lending protocol Kamino and the largest Solana-based decentralized exchange, Jupiter.
To mark the deployment on Solana, Huma and Arf have launched a limited-time campaign that will pay double-digit yields to accredited investors by capturing the revenues from Arf’s cross-border payment financing transactions.
Launched in 2022, the San Fransisco-based startup has raised a total of $38 million in funding.
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