'PayFi' startup Huma Finance expands to Solana in bid to expand trade financing solution

Huma Finance, a EVM-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 payment financing (or "on-demand liquidity") for use cases like remittances, digital asset backed credit cards, trade finance, t+0 solutions for global payments and DePIN financing. 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. The project, a "DeFi track winner" at ETHDenver Hackathon 2022, is already live on Ethereum Layer 2s Polygon, Celo and Scroll, and has previously announced plans to launch on alternative Layer 1 Stellar.

“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, based in San Fransisco, 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.

The startup recently raised $38 million in funding.

Editor's note (Nov. 12, 2024 — 21:30 UTC): Huma has not yet launched on Stellar.