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Arf partners with Huma to bring cross-border receivables on-chain

By Gloria Methri

June 21, 2023

  • Arf
  • Blockchain
  • Blockchain-based Lending
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Arf, Huma Finance, Liquidity, Cross-Border Settlement, Lending, Credit Score, Blockchain, Loans, Cross-Border Payments, FinTech, SwitzerlandArf, a global liquidity and settlement platform, and Huma Finance have partnered to introduce a fully transparent on-chain liquidity solution for cross-border payments.

Financial institutions require liquidity to achieve same-day cross-border settlements, but the amount they can borrow is limited based on the cash collateral they can provide.

To remove the costly pre-funding requirement and reduce the delays and counter-party risks, Arf offers short-term USDC-based working capital loans of 1-5 days to licensed financial institutions and helps them to settle cross-border payments immediately in USDC.

This way, financial institutions can access liquidity and expand in coverage and grow in volume, without any funding or additional working capital requirements. In addition, Arf leverages a blend of traditional and alternative data by developing a proprietary credit engine and an in-house credit score.

Arf and Huma Finance have joined forces to create an on-chain credit pool for cross-border payments, aiming to enhance transparency and traceability in the industry. As part of this partnership, Arf tokenizes cross-border payment orders through Huma Protocol in a privacy-preserving manner and uses them as collateral to borrow from the lending pools.

The collaboration brings all loans, repayments, and receivables onto the blockchain, creating a fully traceable borrowing record. Every transaction, including late repayments and even default rates, will be visible on-chain, ensuring comprehensive and daily transparency while maintaining privacy.

“We are committed to making liquidity more accessible, bringing day-to-day transparency into cross-border payments by utilizing the right digital assets,” said Arf Co-founder and CEO Ali Erhat Nalbant. “We are excited to partner with Huma to have receivable-backed lending on-chain, which will enhance our transparency capabilities to an unprecedented level.”

Huma Finance Co-founder Erbil Karaman said, “Our partnership with Arf embodies our vision of creating a more equitable financial ecosystem. We are not only enhancing liquidity access and achieving an unprecedented level of transparency, but we are also making remittances systemically cheaper and faster. We are excited to work with Arf to drive the evolution of global finance forward.”

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