In the previous post, we discussed how Huma Finance builds protective mechanisms for PayFi — from auditing smart contracts to flexible liquidity management (here link 👈). But security is just one side of the coin. There is another question that is currently concerning both users and large financial institutions: can PayFi become a true bridge between traditional banks and the world of Web3?
📌 Today's gap. Banks operate in an environment of strict regulations, while Web3 exists in a world of decentralization and open data. These two worlds seem to speak different languages.
📌 Huma Finance as a translator. The PayFi technology allows for the conversion of real incomes (salaries, payments, invoices) into tokenized on-chain liquidity. For banks, this is a chance not to be left behind, and for users, it is an opportunity to integrate their real financial profile into the Web3 space.
📌 Transparency and trust. Unlike closed banking models, Huma opens up data on the blockchain. This gives banks the chance to verify creditworthiness in real-time, but without the bureaucracy.
📌 First experiments. Even today, several fintech companies are testing models where PayFi serves as a 'common language' for Web2 and Web3. And this is what makes the technology so interesting not only to the crypto community but also to traditional financial giants.
👉 If you're interested in seeing how @Huma Finance 🟣 really changes the rules of the game and opens doors for collaboration with banks — follow me. Here you will find not advertising, but live analysis and explanations of complex things in simple language.
In the next post, we will talk about what the first mass use case of PayFi might look like, which will be understandable even to those who have never dealt with cryptocurrency. This will be a practical example that might impress even the skeptics 😉🚀
