Huma Finance, a leading tokenization platform for real-world assets, has joined forces with Arf, a liquidity and settlement platform specializing in cross-border payments. The merger aims to propel the adoption of tokenized assets and revolutionize the landscape of cross-border transactions.

Co-founder and co-CEO of Huma Finance, Erbil Karaman, highlighted the significance of the merger, describing it as the convergence of two prominent blockchain use cases — real-world asset tokenization and cross-border payments. The resulting entity, 00 Holdings Inc., will serve as the holding company for both Huma and Arf, maintaining their distinct identities and operational autonomy.

While specific details of the merger remain undisclosed, Karaman revealed that the newly formed entity is poised to close a substantial funding round post-merger, signaling confidence in the growth potential of the combined platform.

The consolidation of Huma and Arf comes amid a burgeoning interest in the tokenization vertical, with established financial institutions such as BlackRock, JPMorgan, Citi, and Franklin Templeton embracing the tokenization of real-world assets. This paradigm shift towards on-chain finance is poised to democratize access to assets, streamline processes, reduce costs, and enhance transparency in financial markets.

Huma Finance, launched last year, has been instrumental in tokenizing assets for cross-border payments, green financing, supply chain financing, and microfinancing. Its platform, operational on Polygon, Celo, and soon on Stellar's Soroban, has garnered significant attention within the industry.

Arf, established in 2019 and regulated in Switzerland, provides liquidity and settlement services to licensed financial institutions engaged in cross-border payments. Leveraging blockchain technology through partnerships with Huma and Circle, Arf facilitates instant liquidity for cross-border transactions without the need for pre-funding, thereby expanding access to real-time global money transfers.

The merger enables investors from both Huma and Arf to become shareholders of the new entity, 00 Holdings, cementing their commitment to the shared vision of transforming the financial landscape. The merger, which began discussions last year and gained shareholder approval, is poised to unlock synergies between the two entities and drive innovation in tokenization and cross-border payments.

Legal counsel for the merger was provided by Derek Colla of Cooley LLP and Cooley's mergers and acquisitions team, along with Switzerland-based Domenig & Partner, underscoring the robust legal framework underpinning the consolidation.

With a combined workforce of 40 professionals spread across the U.S. and Switzerland, Huma and Arf are poised to collaborate closely, leveraging their collective expertise to drive the next wave of innovation in the fintech industry.