The cross-border payment sector is undergoing a revolutionary transformation. Traditional international remittance systems have long been plagued by high fees and lengthy processing times, but emerging blockchain technology is changing this situation.

A fintech company called Huma Finance is utilizing stablecoin and liquidity pool technology to significantly reduce the cost and time of cross-border payments. Compared to the traditional SWIFT system, Huma Finance has lowered the fees from about 3% to between 0.5% and 1.5%, and shortened the transaction time to seconds.

The operational model of Huma Finance is quite innovative. Payment institutions first convert fiat currency into USDC stablecoin, and then conduct instant cross-border transfers through Huma's liquidity pool. The recipient then converts the stablecoin back into local fiat currency. This process cleverly bypasses the intermediaries in the traditional banking system, greatly enhancing efficiency.

Taking remittances from Saudi Arabia to the Philippines as an example, Huma Finance can reduce the original fee of $12 to $1.5, and the transaction can be completed in just 10 minutes. This is undoubtedly a significant benefit for workers relying on overseas remittances and their families.

The business scale of Huma Finance is rapidly growing. It is expected that by the first quarter of 2025, its total locked value (TVL) in cross-border transactions will exceed 1.8 billion USD, processing an average of 42,000 transactions daily, serving payment institutions across 47 countries.

What is even more noteworthy is that Huma Finance is collaborating with Visa to expand its credit card settlement business. This initiative could reshape the landscape of the cross-border small-value high-frequency payment market. With the continuous maturation of technology and the expansion of application scenarios, Huma Finance is expected to become an important player in the future cross-border financial sector.

However, we should also recognize that the application of new technologies often comes with challenges and risks. Issues such as regulatory compliance, security, and compatibility with traditional financial systems need to be seriously addressed by Huma Finance in its future development.

Overall, Huma Finance's innovative model offers a highly potential solution to the pain points of cross-border payments. As globalization deepens and the digital economy develops, more efficient and low-cost cross-border payment solutions will undoubtedly play an increasingly important role. We look forward to seeing more similar innovations that promote the advancement of cross-border financial services and contribute to the integration of the global economy.