Huma Finance is a blockchain-based payment financing platform (so-called “PayFi” protocol) designed to provide fast, on-chain liquidity for global payments. Its mission is to eliminate inefficiencies in traditional finance (e.g. slow cross-border remittances, costly pre-funding) by tokenizing receivables and using stablecoins for settlement  . As the first dedicated PayFi network, Huma offers instant settlement financing and structured credit lines for use cases like cross-border payments, corporate cards, and trade finance, all built on high-speed blockchain rails  . The platform leverages stablecoins (notably USDC) and audited smart contracts so that lenders earn real, double-digit yields from actual transaction fees rather than speculative token rewards  . In short, Huma’s vision is to “accelerate the movement of money” by connecting lenders and borrowers on-chain, democratizing access to income-based DeFi solutions for businesses and individuals around the world  .
Founding Team and Background
Huma Finance was co-founded by Richard Liu and Erbil Karaman, who continue to serve as co-CEOs, along with a broader executive team that includes Chief Business Officer Patrick Campos (joined Feb. 2025). Liu is an engineer by training (formerly Google Engineering Director on projects like Google Fi) and was CTO of fintech startup EarnIn; he also founded Leap.ai (acq. by Facebook) and was a Venture Partner at Foothill Ventures . Karaman has a growth and product background, having led teams at Lyft, EarnIn, and Meta and founding a Turkish micro-Venture Fund (istanbul.500.co) . Both co-founders bring deep fintech and blockchain expertise to Huma. Patrick Campos, an ex-Chief Strategy Officer at Securrency (blockchain finance/regtech), joined Huma in early 2025 as CBO; he had already been a strategic advisor to Huma and partner Arf, advising on liquidity and on-chain capital markets  . These founders position Huma squarely at the intersection of traditional payment finance and on-chain lending, building on their histories in fintech, crypto and financial infrastructure.
Technology Stack and Blockchain Infrastructure
Huma’s architecture is deliberately multi-chain and modular. The core protocol (“PayFi stack”) spans six layers: transaction, currency, custody, compliance, financing, and application . In practice, Huma’s transaction layer runs on high-performance chains – primarily Solana and Stellar – for fast, low-cost settlement  . The protocol also supports EVM-compatible chains (e.g. Polygon, Celo, Scroll) via bridging, with 12 active lending pools distributed across Solana, Polygon, Celo, Stellar and Scroll  . Stablecoins (especially USDC) make up the currency layer, ensuring a sound measure of value for all loans and collateral  . Custody of funds is managed via institutional-grade solutions (Fireblocks, Cobo) and smart contracts , and a dedicated compliance layer enforces KYC/AML rules (for example following Europe’s MiCA and Singapore’s MAS frameworks) . Above this, Huma’s financing logic implements credit tranches, fee structures, and modular repayment schedules tailored to each loan. As a result, Huma can connect on-chain lenders with off-chain payment streams: borrowers get structured credit backed by tokenized receivables, while lenders deploy stablecoin capital into audited pools, all governed by Huma’s smart-contract protocols  .
Core Use Cases and Supported Applications
Huma targets real-world payment and financing use cases that need instant liquidity. The flagship scenario is cross-border payments: instead of pre-funding accounts in foreign banks, payment firms can draw on Huma’s USDC liquidity pool to settle transactions on-demand. Huma also supports corporate/cash card financing (e.g. Rain’s USDC-backed corporate card for crypto companies) and other payables that require short-term funding  . In general, any business with predictable cash flows can use Huma: for example, invoicing and receivables financing (tokenized future payments), supply chain or inventory financing, and even green or SME loan programs  . Huma’s institutional service (Huma Institutional) lets licensed lenders fund specific pools of loans; notable participants include Arf (cross-border remittance pools), Jia, Rain (on Celo), and BSOS (supply-chain financing) .
On the retail side, Huma 2.0 is a permissionless yield vault for everyday USDC holders. Retail depositors can place funds into Huma 2.0 and earn a stable double-digit APY that comes from the underlying commercial lending activity  . In Huma 2.0, depositors receive a liquid LP token called $PST (the PayFi Strategy Token) which represents their share of Huma’s financing pool . This $PST token plugs into the Solana DeFi ecosystem: it can be traded for USDC on the Jupiter DEX, used as collateral on Kamino, or split into leveraged yield strategies on RateX (all planned integrations) . In summary, Huma’s core application is to bring on-chain credit to payment workflows: businesses borrow against tokenized cash flows, while lenders (institutions or retail) supply the needed capital in return for yield.
Tokenomics: Utility, Distribution and Economic Model
The native HUMA token (max supply 10 billion) is designed as both a utility and governance token for the protocol . HUMA is used primarily to reward liquidity providers, partners, and community contributors across the network. For example, investors or users who stake USDC in Huma pools earn transaction fee rewards plus HUMA incentives based on deposit size and lock-up duration  . Token holders can also stake HUMA to accrue additional yield and participate in on-chain governance: staked tokens grant voting power on protocol parameters, incentive allocations, and future feature funding . Over time HUMA may also be required for advanced protocol functions (e.g. instant redeemability of positions) as determined by the community .
At launch (TGE), 17.33% of HUMA (1.733B tokens) was initially circulating to cover public airdrops, listings and liquidity . The remainder of the 10B supply is split into major categories as follows:
• Liquidity Provider & Ecosystem Incentives (31.0%, 3.10B HUMA): Rewards for Huma pools (LPs) and ecosystem partners. This category covers yield incentives and performance rewards. (It included a ~33M token Jupiter DAO swap at genesis.) 
• Investors (20.6%, 2.06B HUMA): Tokens allocated to seed and Series A backers, subject to a 1-year lock-up then quarterly vesting over 3 years .
• Team and Advisors (19.3%, 1.93B HUMA): Allocated to Huma’s founders and core team, also under 1-year lock-up and multi-year vesting .
• Protocol Treasury (11.1%, 1.11B HUMA): Reserved for future development, ecosystem grants, and protocol-owned liquidity. A small portion (1%) was unlocked at TGE; the rest vests linearly over two years .
• CEX Listings & Marketing (7.0%, 700M HUMA): For exchange listings, promotions and campaigns. Fully unlocked at TGE .
• Initial Airdrop (5.0%, 500M HUMA): Distributed to community groups. This airdrop was split among Liquidity Providers (65%, 325M HUMA), ecosystem partners (25%, 125M HUMA) and community contributors (10%, 50M HUMA) ; most of these tokens vested immediately at TGE or shortly thereafter.
• Market Making & On-chain Liquidity (4.0%, 400M HUMA): Used to ensure deep liquidity on exchanges and DEXs; fully unlocked at TGE .
• Pre-sales (2.0%, 200M HUMA): Allocated to early backers and advisors; vesting details have not been publicly disclosed .
This distribution reflects Huma’s economic model: a large portion is dedicated to yielding HUMA to actual participants (LPs and partners) rather than speculation. By locking up tokens for team and investors, Huma ensures alignment over multi-year growth. Overall, HUMA’s utility is to bootstrap and grow the PayFi network by funding participation and giving holders a stake in the protocol’s governance and future.
Partnerships, Collaborations, and Ecosystem Integrations
Huma has cultivated a broad set of partnerships across blockchain, stablecoins and fintech to build its PayFi ecosystem. A cornerstone relationship is with Circle and USDC: Huma relies on the USDC stablecoin for nearly all loans and deposits, leveraging Circle’s liquidity and transparency . (Circle Ventures also participated as an early investor .) Huma’s network is further backed by the Stellar Development Foundation, which invested $10M and supports use of Stellar’s blockchain (optimized for payments) in Huma’s protocol . Huma is also closely allied with the Solana ecosystem: it co-hosts industry events (PayFi Summits with the Solana Foundation) and launched its retail product on Solana. Huma’s $PST token is fully integrated into Solana DeFi: for example, users can swap PST for USDC on the Jupiter DEX, borrow against PST on Kamino, or split PST into RateX yield tokens .
On the partnership front, Huma merged with Turkish fintech Arf in April 2024 to create on-chain pools for cross-border payments . Prior to merging, Huma and Arf had partnered to “create the world’s first on-chain credit pool for cross-border payments” . Other fintech and RWA projects also integrate with Huma: for instance, Rain (on-chain corporate cards) and BSOS (supply-chain financing) operate lending pools within Huma . In the broader crypto landscape, Huma works alongside DeFi protocols like Aave and Pendle (which participate as part of its retail vault strategy) . The company also notes collaborations with asset managers (e.g. Optimizing liquid strategies with specialized funds) and continuously seeks new alliances. In essence, Huma’s ecosystem spans traditional payment networks, stablecoin issuers, blockchain foundations, DeFi protocols, and niche fintechs – all aiming to expand its PayFi network and liquidity pool.
Funding History and Investors
Since its inception, Huma has raised multiple funding rounds totaling over $46 million in capital . In Feb. 2023 Huma closed a seed round for $8.3M, with backing from Distributed Global, Race Capital, ParaFi Capital, Circle Ventures and Folius Ventures . Its Series A in Sept. 2024 raised $38M, led again by Distributed Global, with participation from HashKey Capital, Folius Ventures, the Stellar Development Foundation, and TIBAS Ventures (the VC arm of Turkey’s İşbank) . Notably, the Stellar Development Foundation’s $10M investment underscores the project’s strategic importance in the Stellar ecosystem . A portion of the Series A proceeds was also allocated into Arf’s high-yield RWA loan portfolio as part of the Huma–Arf merger strategy . In summary, Huma’s financing reflects a who’s who of crypto and fintech investors, and positions the company for aggressive expansion in payment finance  .
Regulatory and Compliance Approach
Huma’s design incorporates strong compliance measures, particularly for its institutional service. The Huma Institutional platform is permissioned – only accredited, verified entities can lend into Huma pools. All lenders on this side must pass standard KYC/KYB checks through third-party providers, ensuring they meet regulatory and jurisdictional requirements  . This mirrors traditional finance practices and allows Huma to integrate regulated financial institutions. On the technology side, Huma’s compliance layer is explicit: its architecture calls for KYC/AML controls (e.g. following EU’s MiCA and Singapore’s MAS guidelines) . The protocol uses fully-regulated stablecoins (USDC/PYUSD) and partners with institutional custody solutions (Fireblocks, Cobo) to maintain secure asset management .
In public communications, Huma also clarifies its legal scope: it states that its services are not offered to U.S. persons or other restricted jurisdictions . This indicates a cautious approach under global securities laws. In practice, Huma’s permissionless retail product (Huma 2.0) is broadly accessible to non-restricted crypto users, while Huma Institutional follows the same compliance rules as conventional funds. By combining audited smart contracts with real-world identity checks, Huma aims to meet the standards of regulated finance while operating in the open crypto ecosystem.
Roadmap and Future Plans
Huma’s publicly stated roadmap focuses on scaling the PayFi network and improving real-world impact. In the near term, the team plans to launch new financing pools (for additional use cases) and onboard more institutional partners. Over the next few years, Huma aims to enable much faster settlement: the ultimate goal is same-day (T+0) cross-border payments, with interim targets of T+1 settlement by 2030 . Technically, this means enhancing liquidity and on-chain processing so businesses need not wait days for international transfers.
Beyond feature expansion, Huma is investing in ecosystem and education initiatives. It co-hosts PayFi Summits with the Solana Foundation and attends major crypto events (Token2049, Consensus, Accelerate NYC, etc.) to build awareness . The team has set ambitious growth targets: for example, they project reaching about $10 billion in total transaction volume by end-2025 . To further decentralize the protocol, Huma also plans to launch a governance token with an associated airdrop to community members and liquidity providers . Overall, the roadmap is geared toward expanding real-world usage (adding pools, chains, apps) and bringing more participants on-board, while transitioning governance and incentives to token holders.
Market Positioning and Competitive Landscape
Huma positions itself as a bridge between DeFi and traditional payment finance, carving out a unique niche. It styles itself as the first dedicated PayFi network, explicitly addressing the pain points of global payments with blockchain  . This sets it apart from generic crypto lenders: unlike Aave or Compound (which lend against crypto collateral), Huma’s business is underwriting loans against real-world receivables in stablecoins. Compared to other RWA platforms (like Centrifuge, Maple Finance, TrueFi, etc.), Huma’s focus is narrower – specifically payment rails and short-term business credit – which gives it a clearer use-case but also means it competes more directly with legacy finance systems (e.g. correspondent banking) than with token platforms.
According to industry commentary, Huma’s key advantages include its multi-chain deployment (leveraging Solana/Stellar for high throughput) and its inclusive target market . Huma explicitly aims to serve not only large institutions but also SMEs and crypto-savvy retail investors, democratizing access to real-world yield . Its high, stable yields (double-digit APY from commerce flows) and tokenized “Feathers” rewards have attracted tens of thousands of depositors despite bear markets . In this sense, Huma competes with high-yield DeFi vaults and alternative credit marketplaces by offering transparency (all lending activity is on-chain) and the trust of audited stablecoins.
No single competitor dominates the PayFi space yet. Arf (now merged with Huma) was one peer in cross-border liquidity, and some crypto banks/cefi platforms (like Mercury) offer similar USDC rails. But Huma’s end-to-end, permissionless approach sets it apart. Traditional fintechs (SWIFT, banks, factoring companies) are the “competitors” for payment credit, but they lack on-chain transparency and speed. In short, Huma’s competitive edge is combining blockchain-native settlements with real-world lending expertise. It still faces the challenge of adoption – both educating businesses to use on-chain credit and proving out its regulatory compliance – but its funding, partnerships, and early traction suggest it is well positioned to redefine how payments are financed globally
