Rain, a spend management platform designed for Web3 teams, is partnering with Huma Finance, a leading on-chain private credit platform, to expand liquidity and credit options for Web3 communities, empowering the expansion of the digital money ecosystem.
Spending digital currency on real-world expenses like cloud bills and conference costs remains a challenge for Web3 teams. To solve this, corporate cards that allow digital currencies like stablecoins to be spent in fiat are emerging, simplifying financial management and bridging the gap between digital and traditional economies.
Huma Finance, known for enabling innovative credit solutions such as USDC-based remittance settlements, is now venturing into settlement liquidity for USDC-backed company cards. Rain, on the other hand, empowers Web3 native teams like DAOs, protocols, networks, and similar projects to effortlessly transact in fiat using cards backed by their on-chain assets.
This partnership merges Huma's robust infrastructure and credit capabilities with Rain’s innovative approach. By providing settlement liquidity for the cards it eliminates the need for employers to manage each employee transaction individually, streamlining the process significantly.
Rain provides a payment system where the employer offers collateral in Circle’s USDC, which serves as a credit limit. This collateralization provided in USDC, a stable and regulated digital dollar that substantially reduces the credit risk. Huma's role in this ecosystem is to provide the platform for settlement liquidity of these cards, thereby facilitating smoother operations and extending liquidity to a broader range of Web3 employers.
"Rain's core mission is enabling the use of on-chain assets in real-world applications. The collaboration with Huma Finance and their innovative capital solution, allows us to continue bringing this vision to reality for our team and our customers across the globe," adds Farooq Malik, Co-founder and CEO of Rain.
The partnership will initially launch on the Polygon chain, with Rain as the borrower and Huma Finance providing the liquidity. The teams are working on building a fully automated repayment flow guaranteed by the USDC collateral held in smart contracts to eliminate counterparty risk.
Richard Liu, Co-founder and Co-CEO of Huma Finance, shares his perspective, “Rain creatively uses USDC to enable Web3 communities to access Web2 financial services with full collateralization. This aligns extremely well with our mission to support blockchain-enabled fintechs. We are very excited to grow this partnership.”
The collaboration diversifies Huma's credit offerings but also enhances Rain’s capabilities to serve a wider range of Web3 teams. By integrating Huma's short-term credit solutions with Rain’s spend management platform, this collaboration paves the way for more innovative and efficient financial transactions within the digital money ecosystem.
View the Rain Receivables Pool on the Huma dApp.
About Rain: Rain is revolutionizing spend management for Web3 teams. Designed for the digital asset ecosystem, Rain enables seamless interoperability between digital assets and the fiat systems crucial for everyday operations. Whether it’s self-custody, institutional custody, or anything in between, Rain caters to all needs, ensuring operational efficiency in both on-chain and off-chain environments. Learn more https://www.raincards.xyz/.
About Huma Finance: Built by serial entrepreneurs, fintech, and credit veterans, Huma Finance is the leading credit platform, where high performing receivables from real world businesses connect with global capital on-chain. Learn more https://huma.finance/.