HUMA Series (VII): From Traditional Finance to PayFi
The traditional financial system is like an old cart: slow, expensive, and full of barriers. SWIFT transfers can take days, and high fees make cross-border remittances costly. Huma Finance's PayFi network is injecting new vitality into global finance using blockchain technology, initiating the transformation from traditional finance to PayFi.
Huma breaks the stringent collateral requirements of traditional banks by using on-chain accounts receivable and future income streams as collateral. Users do not need to pledge physical assets; they can obtain immediate liquidity by relying on cash flows such as salaries and invoices. This unsecured lending model allows small and medium-sized enterprises and individuals to easily access funds, freeing them from the cumbersome processes of traditional finance.
More importantly, Huma utilizes Solana's high-speed blockchain to achieve real-time settlements. Whether merchants are waiting for sales proceeds or migrant workers are sending money home, Huma can complete transactions in seconds, with costs far lower than traditional banks. This efficiency and transparency is precisely what makes PayFi a disruption to traditional finance. $HUMA is not just a technology platform, but a vision for freer and fairer money movement, leading us into a new financial era.
