Huma Finance published a detailed breakdown of the PayFi Stack, a six-layer framework for blockchain-based payment financing inspired by the OSI model. The framework addresses limitations in traditional finance by enabling real-time, programmable, borderless payments through structured layers covering transactions, currencies, custody, compliance, financing, and applications.
Huma Finance detailed the PayFi Stack, a modular architecture that reimagines payment financing on blockchain. Inspired by the OSI model's seven layers, Huma's six-layer framework standardizes how blockchain-based payment applications integrate: the Transaction Layer (fast L1/L2s like Solana and Stellar), Currency Layer (stablecoins providing price stability), Custody Layer (MPC and smart contract-based asset management), Compliance Layer (KYC/AML on-chain identity), Financing Layer (risk assessment and asset structuring), and Application Layer (intuitive financial interfaces). The PayFi Stack, developed with partners including Circle and supported by major blockchains, aims to replace slow, expensive traditional financial infrastructure with instant, programmable alternatives that democratize access to credit and cross-border payments.
