Stablecoin cross-border payment infrastructure company Trace Finance has completed a $32 million Series A funding round. The company disclosed that the round was led by CoinFund, with participation from Coinbase Ventures, Haun Ventures, Jump Capital, and others. The funds will be used to expand its cross-border settlement network and compliance capabilities.
Regulatory changes in Brazil are driving institutional demand
Trace Finance, headquartered in New York, primarily connects the Brazilian and U.S. banking systems with a stablecoin settlement network. The company states that as Brazilian regulators reclassify cross-border crypto transfers as foreign exchange transactions, institutional funds are shifting from unregulated platforms to licensed, bank-grade service providers.
This change is a key backdrop to Trace’s current business expansion. According to co-founder and CEO Bernardo Brites, stablecoins alone cannot solve cross-border payment challenges; they must be integrated with locally regulated banking infrastructure to meet the real-world needs of businesses and financial institutions.
Over $10 billion in trading volume processed
The company disclosed that Trace Finance has processed over $10 billion in cross-border transaction volume and has become a primary settlement partner for several global payment companies operating in Latin America, including the Uruguayan payment company dLocal.
- CoinFund led this round of funding, raising $32 million.
- Cumulative cross-border transaction volume exceeded $10 billion
- The business begins with the settlement channel between the United States and Brazil.
Additional participants in this round include Chainlink Labs, Circle co-founder Sean Neville, and Solana Labs co-founder Anatoly Yakovenko. Ricardo Villela Marino, Vice Chairman of Latin America’s largest bank, Itaú Unibanco, also participated in this investment round.
Funds will be allocated to additional markets.
Trace Finance stated that the new funding will enable the company to expand beyond its existing U.S.-Brazil corridor into additional Latin American markets, as well as enter other U.S. use cases and the Asia-Pacific region.
The company also stated that it is developing additional settlement products to deepen its collaboration with the banking system in Brazil and beyond. Trace’s previous funding round was a seed round in 2022, led by HOF Capital.
Additional information: Einar Braathen, partner at CoinFund, stated that Brazil’s payment environment is large and operationally complex, and Trace’s current compliance infrastructure is already used by multiple global enterprises to reduce the time and cost of cross-border payments.