Huma Finance, a platform specializing in tokenizing real-world assets, has merged with Arf, a liquidity and settlement platform focused on facilitating cross-border payments. The aim of this merger is to bolster the adoption of tokenized assets.
Erbil Karaman, co-founder and co-CEO of Huma Finance, described the merger as the fusion of two leading blockchain use cases—real-world asset tokenization and cross-border payments—into a comprehensive platform. Under the newly formed 00 Holdings Inc., both Huma and Arf will operate as distinct entities, maintaining their respective names and branding.
While specific terms of the deal were not disclosed, Karaman mentioned that the merged entity is currently in the process of finalizing a significant funding round. This strategic move comes amidst the growth of tokenization in the financial landscape, with major players like BlackRock, JPMorgan, Citi, and Franklin Templeton embracing the trend.
Huma Finance introduced its tokenization platform last year, focusing on areas such as cross-border payments, green financing, supply chain financing, and microfinancing. The platform is operational on Polygon and Celo and is slated for launch on Stellar’s Soroban smart contract platform in the near future.
In contrast, Arf, established in 2019, provides liquidity and settlement services to licensed financial institutions involved in cross-border payments, with a regulatory framework based in Switzerland.
Huma and Arf have been strategic partners since early last year, leveraging blockchain technology to enhance liquidity and streamline cross-border payments for financial institutions.
With Arf recently surpassing $1 billion in on-chain liquidity volume, the merged entity anticipates reaching $3 billion in volume by year-end, driven by a projected $500 million monthly liquidity demand from global partners.
Although profitability has not been achieved yet, both Huma and Arf experienced a remarkable revenue growth of 35x last year. The new entity aims to break even by the end of this year.
Noteworthy investors from both Huma and Arf will transition into shareholders of 00 Holdings as part of the merger agreement. Discussions regarding the merger began last year, with final approval from shareholders obtained and legal procedures expected to conclude later this month.
While Huma is headquartered in the U.S. with a team of ten employees, Arf, based in Switzerland, boasts a workforce of 30. Despite operating as separate entities, these teams will collaborate closely moving forward.
The merger deal was advised by Derek Colla of Cooley LLP, along with Cooley’s mergers and acquisitions team, and Switzerland-based Domenig & Partner.
