Trace Finance raises $32M to expand stablecoin settlement

Trace Finance raised $32 million in a Series A round led by CoinFund, with participation from Coinbase Ventures, Jump Capital, Paxos and HOF Capital. The company will use the funding to expand stablecoin settlement and cross-border payments infrastructure in Latin America, the United States and the Asia‑Pacific region. Trace reports it has processed more than $10 billion in transaction volume to date.

Trace Finance builds infrastructure that links stablecoins with local banking systems and foreign exchange networks to shorten settlement times and reduce costs for cross-border transfers, particularly in Latin America. The company plans to use the new capital for regional expansion and product development for its banking, foreign-exchange and settlement services.

The firm previously raised $4.3 million in a 2022 seed round led by HOF Capital, with participation from Circle Ventures and Mantis VC.

Regulatory action has advanced stablecoin policy in several jurisdictions. U.S. legislation known as the GENIUS Act became law in July 2025. Hong Kong enacted a Stablecoin Ordinance in August 2025 and has issued initial licenses to issuers and service providers. A People’s Bank of China official, Wang Xin, stated authorities are ‘closely monitoring how stablecoins could affect the international monetary system and cross-border payments.’ PBOC Governor Pan Gongsheng described stablecoins as ‘high-risk and vulnerable to misuse for illicit cross-border transfers.’

Private-sector firms have also expanded offerings to connect digital assets with traditional finance. MassPay announced a partnership with Coinbase to enable stablecoin-powered international payouts. Stripe acquired stablecoin infrastructure startup Bridge in 2025, and Circle launched the Circle Payments Network in May 2025 to link banks, payment companies and digital wallets for real-time cross-border settlement using stablecoins.

The broader stablecoin market has a market capitalization of about $315 billion. Trace Finance plans to use the funding to grow operations in markets where dollar-denominated remittances and cross-border business payments are common.