Huma Finance, through its structured financing module in Huma Institutional, provides flexible and efficient on-chain payment financing solutions for institutional investors and payment enterprises, significantly enhancing capital efficiency in the Web3 payment ecosystem. In 2025, Huma Finance's transaction volume reached $5.7 billion, with a TVL of $136 million, serving over 35 partners including Arf and Jia, with zero default records.
Huma Institutional has deployed 12 active liquidity pools based on blockchains such as Solana, Polygon, and Celo (6 on Solana, 2 each on Polygon and Celo, and 1 each on Stellar and Scroll), supporting accounts receivable financing and cross-border payments. The white paper shows that the structured financing module allows pool owners to customize repayment plans, fee structures, and tiered configurations to meet diverse financing needs. In tests, an Arf pool processed 10,000 cross-border payments in 1 minute, with Gas fees of only $0.001, significantly lower than the $50 cost of the SWIFT system, achieving a 60% efficiency increase.
The core of the structured financing module lies in its modular design and risk management framework. The module defines borrower credit requirements through Huma Protocol Core, combined with third-party evaluation agents for credit audits. Tests show that setting a $10 million credit limit for SMEs takes 5 minutes, with an accuracy rate of 99.5%. The module supports single tier (only primary tier) and dual tier (senior and primary tier) structures, with senior tier offering low risk and low return, while primary tier offers high risk and high return. In tests, senior tier has a priority for recovery in case of default, reducing loss rates by 30%.
Huma Institutional collaborates with Circle and Stellar Development Foundation to optimize USDC settlements, increasing transaction volume to $500 million in 2024. Developers can integrate financing features into a payment DApp using the Huma SDK integration module, with tests showing it takes 2 hours to add financing functionality, reducing the development cycle by 25%. The Dune dashboard provides real-time pool data, improving transparency by 20%, but the complex tiered configuration poses challenges for newcomers, suggesting a user interface optimization.
Market fluctuations may impact pool yields, and it is recommended to introduce a dynamic risk adjustment mechanism. Huma Institutional's structured financing module provides precise and efficient solutions for payment financing through flexible configuration and multi-chain support, setting an industry benchmark for Web3 institutional financing.
