The funding comes amid broader regulatory developments in stablecoins, such as the GENIUS Act in the U.S. and Hong Kong’s Stablecoin Ordinance, which are accelerating cross-border payment infrastructure and licensing activity.

Trace aims to extend its U.S.–Brazil bridge by expanding into LatAm and other emerging markets, arguing that stablecoins paired with regulated local banking infrastructure deliver more effective cross-border payments than stablecoins alone.

The company plans to build a regulated financial layer that connects global stablecoin liquidity with local banking systems to support enterprises, fintechs, exchanges, and global platforms.

The Series A follows a 2022 seed round of $4.3 million led by HOF Capital, with Circle Ventures and Mantis VC also involved; HOF Capital participated in both rounds.

Trace Finance raised a $32 million Series A led by CoinFund with participation from Coinbase Ventures, Haun Ventures, Jump Crypto, Valor Capital, Paxos, HOF Capital and others to scale regulated cross-border payments and stablecoin settlement infrastructure.

As part of the deal, CoinFund partner Einar Braathen joined Trace Finance as a board member, signaling investor oversight.

Trace Finance has processed over $10 billion in institutional cross-border volume and is a primary infrastructure provider for the top four global payment companies in Latin America, including dLocal, with other partners undisclosed due to contracts.

Investors see Brazil as a proving ground and question whether Trace’s compliance stack can be ported effectively to APAC markets, impacting the pace of broader regional expansion.

Trace Finance, a Brazil-based stablecoin payments infrastructure firm, highlighted by investors as expanding regulated cross-border payments, with angel investors including Sean Neville and Anatoly Yakovenko.

Industry players are building cross-border payment infrastructures around stablecoins, with examples like MassPay partnering with Coinbase for stablecoin payouts, Stripe acquiring Bridge, and Circle launching a real-time cross-border settlement network.

Founders argue that stablecoins alone cannot solve cross-border payments and emphasize the need for regulated local banking infrastructure to enable global settlements.

The funding round includes strategic backers such as Chainlink Labs and SNZ Capital, with notable founders and operators from the stablecoin, payments, and banking ecosystems participating, including figures from Circle, Solana, Mesh, and Itaú Unibanco.