Huma Finance: Innovating the Settlement Model for Global Payment Institutions
In the traditional financial system, the settlements of global payment institutions often rely on the outdated SWIFT system and pre-financing methods, which are inefficient and have many limitations. However, @Huma Finance 🟣 , with its innovative model, brings a brand new settlement experience for payment institutions.
Huma Finance, as a PayFi network, provides liquidity solutions for on-demand settlements for global payment institutions. Payment institutions no longer need to rely on traditional inefficient methods but can use the liquidity of the Huma protocol for settlements, enjoying the advantages of stablecoin instant settlements 24/7. This model not only improves settlement efficiency but also reduces costs.
When payment institutions use the liquidity of the Huma protocol, they only need to pay a fee of 6 - 10 basis points per transaction per day until the borrowed liquidity is repaid, usually within a cycle of 1 - 6 days. This flexible fee model and shorter repayment cycle allow the liquidity within the protocol to be recycled multiple times within a year, with small transaction fees continuously accumulating, providing significant returns for liquidity providers.
The emergence of Huma Finance represents a significant innovation in traditional payment settlement models. It enables global payment institutions to settle more efficiently and conveniently, driving the digital transformation of the financial industry.