- For use cases like as remittances, digital asset-backed credit cards, trade finance, t+0 solutions for international payments, and DePIN financing, Huma leverages blockchain technology to provide payment financing, often known as “on-demand liquidity.”
- The system has previously stated aspirations to debut on the alternative Layer 1 platform, Stellar, and is currently operational on Ethereum’s Layer 2s, Polygon, Celo, and Scroll.
To enhance its “instant liquidity solution,” Huma Finance, an EVM-based payment finance network, is launching on Solana. A program that offers authorized investors larger rates is launched at the same time.
With no credit failures, the so-called “PayFi” system has handled more than $2 billion in transactions so far this year. According to reports, it is on track to reach $10 billion in transaction volume next year after merging with the cross-border payments company Arf.
Payment financing (also known as “on-demand liquidity”) is provided by Huma using blockchain technology for use cases like as trade finance, digital asset-backed credit cards, remittances, t+0 solutions for international payments, and DePIN financing. The goal is to solve inefficiencies in conventional financial systems, like exorbitant fees and protracted processing periods.
The project will be able to grow its PayFi network and venture deeper into the “decentralized infrastructure” (also known as DePIN) domain with the launch on Solana. The project is currently operational on Ethereum Layer 2s Polygon, Celo, and Scroll and was named a “DeFi track winner” at the 2022 ETHDenver Hackathon. It has previously declared its intention to debut on the rival Layer 1 Stellar.
As protocols strive to become not only more capable but also more accessible and user-friendly, we are going to see a boom in activity in the decentralized payment financing space. It is noted that cryptocurrencies may be “written off as a frustrating experience” if projects are unable to address persistent UX/UI problems.
We must make sure we live up to the expectations of the masses who come in hoping to discover the future of cash. Markets, smooth transaction processing, and instant settlements must perform on par with or better than their TradFi equivalents. To keep cryptocurrencies from imploding under the weight of their own potential, Huma’s efforts to facilitate real-time payments are crucial.
Karaman went on to say that a new group of consumers would get interested in cryptocurrency as a result of the new administration’s support for it. The main Solana-based decentralized exchange, Jupiter, the leading Solana lending system Kamino, infrastructure provider Fireblocks, and stablecoin issuer Circle have all joined with San Francisco-based Huma.
Huma and Arf have started a limited-time campaign to commemorate the deployment on Solana, which will use the profits from Arf’s cross-border payment financing transactions to give accredited investors double-digit rates.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
