As a seasoned crypto investor with over a decade of experience under my belt, I find Huma Finance’s recent $38 million funding round to be an exciting development in the world of blockchain and trade finance. Having witnessed the evolution of various blockchain projects from their infancy, I can confidently say that Huma’s dual strategy is a step in the right direction. The integration of real-world assets onto two new blockchains, Solana and Stellar’s Soroban smart-contract network, is a strategic move to broaden its reach and tap into the growing market of tokenized real-world assets (RWAs).
Headquartered in San Francisco, Huma Finance successfully secured $38 million in investments. This money will be utilized to debut on not one but two additional blockchain networks – Solana and Stellar’s Soroban smart contract platform. The ultimate goal is to extend its influence in the realm of tokenized real-world assets (RWAs) by broadening its horizons.
Huma’s Dual Strategy Drives RWAExpansion
The latest $38 million funding round for Huma Finance involves a two-pronged approach. Initially, an investment of $10 million is directly sourced from the venture capital firm Distributed Global. Additionally, Hashkey Capital, Folius Ventures, Stellar Development Foundation, and TIBAS Ventures, which is connected to Turkey’s İşbank, are some other significant contributors in this round.
Approximately $28 million worth of earnings from real-world assets providing returns are connected to Huma’s platform and tied in. Notably, the Stellar Development Foundation was instrumental in this, having contributed $10 million.
Huma’s co-founder, Erbil Karaman, disclosed information about these Realized Water Assets (RWAs). He clarified that they are organized as multi-tiered bonds with varying maturities, combined into financial products traded on exchanges (ETPs), issued by Arf Capital – a Swiss company. This method conforms to Switzerland’s digital ledger technology (DLT) regulations, ensuring compliance with the law.
Tokenized Representable Assets (RWAs) are increasingly being adopted in the realm of blockchain technology. Across the globe, financial institutions and digital asset firms are exploring the potential of blockchain to enhance conventional assets such as bonds, credit, and investment funds. This transition may result in swifter transactions, increased transparency, and operational efficiencies.
The PayFi platform developed by Huma is designed to address the challenges related to liquidity in trade financing. Through the use of blockchain technology, they provide a smoother and more convenient option compared to traditional methods.
Partnership to Drive $10B Payments by Next Year
In early 2024, Huma Finance combined forces with Arf, with the goal of strengthening their focus on the tokenization of real-world assets (RWA). Despite this merger, both companies will maintain their individual operations under a joint holding company. This partnership results in a comprehensive platform for tokenized asset services. In the near future, Huma anticipates that this alliance will facilitate approximately $10 billion worth of payments and financing transactions within the next year.
Chao Deng, CEO of Hashkey Capital and a key investor in Huma, noted that Huma’s PayFi network represents a significant change in the way payment financing operates,” he said. “This innovative network is providing crucial liquidity and compatibility to an industry that has historically struggled with inefficiencies and restricted access.
The latest funding round by Huma Finance marks an essential advance in building a strong, blockchain-based infrastructure aimed at enhancing trade finance offerings. Looking ahead to growth on Solana and Soroban platforms, the firm is poised to lead the way in this rapidly developing sector.
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2024-09-11 16:09