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Tokenized RWA Platform Huma Finance Gets $38M Investment, Plans Expansion to Solana and Stellar’s Soroban

Sep 10, 2024
  • The fundraising round consisted of $10 million equity investment and $28 million of investments in real-world assets on Huma’s platform.
  • Investors included Distributed Global with significant participation from Hashkey Capital, Folius Ventures, Stellar Development Foundation, and TIBAS Ventures.
  • Huma merged with cross-border payments firm Arf earlier this year and the two are projected to hit a combined $10 billion in payments-financing transactions next year.
As a seasoned crypto investor with over a decade of experience in the digital asset market, I find the recent $38 million investment round in Huma Finance particularly intriguing. The merger with Arf and the focus on tokenized real-world assets (RWA) is a bold move that aligns perfectly with my belief in the transformative potential of blockchain technology.Huma Finance completed a $38 million funding round to strengthen its PayFi platform, which utilizes tokenized real-world assets (RWA). In simpler terms, they raised $38 million to improve their payment-financing service that operates using digital tokens representing physical assets.
The round comprised $10 million of equity investment and $28 million in yield-bearing RWAs on the San Francisco-based company’s platform.
The primary contributor to the equity portion was Distributed Global, a venture capital firm, with substantial involvement also from Hashkey Capital, Folius Ventures, the Stellar Development Foundation, and TIBAS Ventures, which is the venture division of Turkey’s largest private bank, İşbank. In the RWA (Risk-Weighted Asset) component, the Stellar Development Foundation took the lead, investing a sum of $10 million.

According to Erbil Karaman, the founder of Huma, these real-world assets were bonds with multiple tranches and different maturities combined into exchange-traded products. These financial instruments were issued by Arf Capital, a Swiss company, under the digital ledger technology laws of Switzerland.

As an analyst, I can express this statement as follows: In the upcoming months, I anticipate that our company’s strategic investment will enable us to extend our platform to both the Solana blockchain and the smart contract network of Stellar’s Soroban, allowing for further growth and exploration in these areas.

One way of rephrasing the given text in a natural and easy-to-understand manner is: “Tokenized Real-World Assets (RWAs) are rapidly expanding uses for blockchain technology. Major financial institutions and digital asset companies worldwide are competing to transfer traditional investments like bonds, loans, and funds onto distributed ledgers. This move could lead to operational improvements, quicker transaction settlements, and enhanced transparency.

As a crypto investor, I’m excited about the potential of the PayFi platform. This innovative system is designed to tackle the liquidity challenges in trade financing by leveraging the power of blockchain technology. It promises to deliver services that are not only more efficient but also more accessible compared to traditional methods.

As a researcher, I recently delved into the exciting development where Huma Finance and Arf joined forces this year, with the primary aim of concentrating on the tokenization of RWAs. Under a collective holding entity, both entities will maintain their independence while collaboratively providing a comprehensive platform for tokenized assets. Next year, it’s anticipated that our combined operations will reach $10 billion in payments and financing transactions, as Huma announced.

According to Chao Deng, CEO of Hashkey Capital, who is among PayFi network’s investors, this innovative payment system signifies a significant change in how financing for payments operates. It aims to provide crucial liquidity and compatibility, addressing long-standing issues of inefficiency and restricted access that have burdened the industry for quite some time.

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2024-09-11 12:13