Quick take:
- $10 million of the investment was structured as equity with $28 million invested in yield-bearing real-world assets on the Huma platform.
- The company plans to use the capital to expand its offerings to Solana and Stellar’s Soroban smart contract network.
- The fundraising comes just months after Huma Finance’s merger with cross-border payments firm Arf, earlier this year.
Huma Finance has received a $38 million investment structured as equity and investments in yield-bearing real-world assets. Distributed Global led the $10 million equity round, attracting participation from Hashkey Capital, Folius Ventures, Stellar Development Foundation, and TIBAS Ventures.
The $28 million investment in real-world assets listed on the Huma platform saw Stellar Foundation as the largest participant with a commitment of $10 million. The real-world assets were “multi-tranche bonds of varying maturities wrapped into exchange-traded products issued by Switzerland-based Arf Capital under Swiss DLT laws, Erbil Karaman, co-founder of Huma told CoinDesk.
Huma Finance plans to use the fresh capital to expand its offerings to the Solana blockchain and Stellar’s Soroban smart contract network.
The announcement comes just months following Huma Finance’s merger with cross-border payments firm Arf as part of a strategic shift that will the San Francisco-based platform focus on the tokenisation of real-world assets.
Real-word asset tokenisation is emerging as one of the fastest-growing verticals of blockchain technology. Some of the leading mainstream asset managers like BlackRock through its USD Institutional Digital Liquidity Fund, BUIDL, provide investors with access to yield on assets like US treasuries.
Huma Finance offers a PayFi platform that is designed to address the liquidity needs of trade finance using blockchain technology. The company claims its platform provides a more efficient service compared to traditional banking methods.
“Moving money quickly and cheaply across borders is at the core of what the Stellar network does best. PayFi is providing real-world utility that solves problems for people and companies, and it is the type of project tailor-made for the Stellar network. We look forward to continuing to working with Huma to grow the PayFi ecosystem,” said Denelle Dixon, CEO of the Stellar Development Foundation.
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