Huma is not just telling the story of a single product... As stablecoin payments accelerate their penetration into the global financial system, Huma focuses on the PayFi track, firmly establishing itself as a leader in the 'cross-border payment financing' sub-sector and becoming a benchmark for RWA applications.#HumaFinance 1. What is PayFi? PayFi is a payment financial service centered around stablecoins, aimed at solving the core issues of 'low efficiency + high cost' in cross-border payments. By using stablecoins as a medium, it enables fast on-chain settlement while providing financing services to businesses, significantly enhancing the efficiency of capital turnover. Huma Finance is undoubtedly the most representative project in this field. 2. Huma's Core Logic @Huma Finance 🟣 Huma's business model is very clear: C2B structure. Ordinary users can lend USDC to the platform and receive stable returns (such as an annualized 10%), while the borrowers are compliant cross-border payment companies. These companies require short-term funds for upfront payments and then recover the funds from the remitter, thus forming a low-risk, short-cycle cash flow loop. Huma utilizes smart contracts to complete the on-chain lending process and achieves compliance pathways on-chain and off-chain by acquiring the licensed entity Arf to custody fiat collateral. 3. Huma's Innovations Huma has successfully migrated traditional financial services to the blockchain. It provides short-term liquidity support to compliant cross-border payment institutions, with funding sourced from ordinary users on-chain, rather than being limited to traditional financial institutions. This C2B lending design not only significantly enhances the efficiency of capital usage but also effectively controls the risks of on-chain capital. More importantly, Huma is not fighting alone—by acquiring the licensed settlement company Arf, it quickly addresses compliance gaps and connects the asset circulation loop between on-chain and off-chain. This gives it the stability of traditional finance and the openness and composability of Web3. Looking at the team, Huma's founder Richard is an entrepreneur with rich business experience. He previously led the construction of payment infrastructure in the Web2 space and deeply understands the demand for capital efficiency in cross-border businesses. With a dual background of 'industry + technology', Huma demonstrates exceptional foresight and execution in its track. Its business model has achieved positive cash flow, making it one of the few Web3 infrastructure projects that can still expand in a bear market.
