CoinFund leads $32 million round in Trace Finance

Trace Finance raised $32 million in Series A funding, led by CoinFund, to expand its stablecoin settlement infrastructure across Latin America, the U.S. and Asia-Pacific markets.

Coinbase Ventures, Jump Capital and Paxos joined the round, Trace Finance said Wednesday. HOF Capital, an investor in the company's 2022 seed round, also participated.

Trace Finance builds banking, foreign exchange and stablecoin settlement tools for cross-border payments. The company focuses on Latin America, where businesses often face slow bank transfers, high foreign exchange costs and fragmented local payment rails.

Trace Finance said clients have processed more than $10 billion in transaction volume through its platform. The company plans to use the new funding to add markets and deepen links between blockchain payment networks and traditional banking partners.

The round follows Trace Finance's $4.3 million seed raise in 2022. HOF Capital led that round, with Circle Ventures and Mantis VC, the venture firm co-founded by The Chainsmokers, also backing the company.

Stablecoins now sit near the center of the cross-border payments debate. DeFiLlama pegged stablecoin market capitalization at about $315 billion, giving infrastructure startups a larger base of dollar-linked tokens to route across borders.

Regulators have also pushed the sector toward formal financial rails. U.S. President Donald Trump signed the GENIUS Act in July 2025, and lawmakers in other markets began drafting or revising stablecoin rules after that law passed.

Hong Kong implemented its Stablecoin Ordinance in August 2025 and granted its first licenses this year. In China, People's Bank of China official Wang Xin said Wednesday that authorities monitor stablecoins' effect on the international monetary system and cross-border payments.

Wang took a softer tone than PBOC Gov. Pan Gongsheng used in October 2025. Pan called stablecoins high-risk and warned that criminals could use them for illicit cross-border transfers.

Private payment companies have moved at the same time. MassPay partnered with Coinbase last week to support international payouts through USDC and other digital assets. Stripe acquired stablecoin infrastructure startup Bridge in 2025, and Circle launched the Circle Payments Network in May 2025 to connect banks, payment companies and digital wallets for real-time settlement.

Trace Finance enters that race with a regional focus. Latin America gives stablecoin infrastructure firms a clear test case: businesses need dollar access, payment corridors span multiple banking systems and local currency volatility can add cost between invoice and settlement.

The company still faces execution risk. Stablecoin settlement depends on banking partners, liquidity, compliance controls and local licenses. Investors are betting Trace Finance can turn those pieces into payment infrastructure that companies use before banks build the same service themselves.