The merger of Huma Finance and Arf, two advanced blockchain platforms for financial services, was recently officially announced. This breakthrough signals an important step in pursuing their shared mission to reshape global economic exchange. These collaborations will significantly improve the landscape of blockchain-based financial services, likely reaching a liquidity volume of more than $3 billion by 2024.
The problem of cross-border money transfer is complicated. It includes several factors such as clearing systems of different countries where they do not all follow the same financial standards and specific laws of each country. Currently, there are approximately $4 trillion in treasury accounts worldwide. This amount may seem trivial to some people, but it takes a lot of energy from the payment system and financial institutions. To address these challenges, the two companies partnered in 2023 with support from the Stellar Development Foundation. The collaboration between the parties was aimed at creating an on-demand liquidity solution using Circle’s stablecoins USDC and tokenized assets in the real world.
As a result, this partnership has enabled more than $1 billion worth of trade to move effectively across borders. Demand for these innovative solutions is overwhelming, as the top global payments companies are looking to purchase $500 million of these products every month. By combining Arf’s liquidity management capabilities with Huma’s great tokenization platform, the new entity plans to use the latest entity to revolutionize the corporate and individual payment processes. This integration would reduce pressure on working capital by eliminating the need for capital outflows.
Arf co-founder and CEO Ali Erhat Nalbant also gave his opinion on the matter, stating that the main goal of their company was to create a financial system that would be easily accessible to everyone. While they are set on eradicating poverty in the next decade, billions of people are expected to enjoy the same rights. They will bring their liquidity source with Huma’s state-of-the-art asset-based blockchain technology. This will increase the visibility of financial institutions and they will be able to be more transparent and therefore comply with regulations in the blockchain.
Erbil Karaman, one of the co-founders and co-CEOs of Huma Finance, emphasized the big picture of their partnership. As Huma points out, the primary goal is to leverage blockchain technology to bring about significant changes in the real world.
A billion people worldwide will benefit from international schemes, and this number is expected to increase as more people worldwide embrace digital employment.
Together with Arf, we would like to expand the reach of people who can use fast, transparent and immediately available liquidity solutions for their financial activities.
Over time, Arf and Huma demonstrate a deep and ever-increasing commitment to offering more liquidity solutions, integrating new applications and solidifying their position as leaders in financial technology flows. This purposeful partnership not only makes traditional banking obsolete, but also seeks to expand the reach and participation of the unbanked in the financial systems.