Trace Finance Secures $32 Million in Series A Funding as Global Stablecoin Infrastructure Expands

Trace Finance, a specialized company building settlement infrastructure for stablecoins, has successfully raised $32 million in a Series A funding round. The investment round was led by prominent venture capital firm CoinFund, highlighting the growing investor confidence in blockchain-backed cross-border payment solutions.

According to a statement shared with Cointelegraph on Wednesday, the funding round also saw participation from a roster of notable industry players, including Coinbase Ventures, Jump Capital, and Paxos. HOF Capital, which previously led Trace Finance’s seed round, also participated in the Series A financing, reinforcing its long-term support for the startup.

Trace Finance provides essential banking, foreign exchange, and stablecoin settlement infrastructure tailored for cross-border payments across Latin America. The company reports that it has already processed more than $10 billion in transaction volume. With the newly acquired capital, Trace Finance plans to accelerate its expansion efforts into new geographical territories, specifically targeting markets across Latin America, the United States, and the Asia-Pacific region.

The successful funding round arrives at a time when stablecoin settlement is increasingly integrating into regulated financial infrastructure. Across the global financial landscape, companies are racing to connect blockchain-based payment rails directly to local banking systems and traditional foreign exchange networks, bridging the gap between decentralized finance and legacy monetary operations.

Trace Finance’s journey to its current scale includes a $4.3 million seed investment round secured in 2022. That foundational round was led by HOF Capital, with additional backing from Circle Ventures and Mantis VC, the venture capital firm co-founded by electronic music duo The Chainsmokers.

The broader stablecoin market has expanded significantly over recent years, with total market capitalization recently standing at approximately $315 billion, according to data from DeFiLlama. This massive pool of digital liquidity continues to drive demand for robust settlement infrastructure, enabling businesses to move funds internationally with greater speed and efficiency than traditional correspondent banking networks can typically offer.

Stablecoin regulation drives cross-border payments push

Global discussions surrounding stablecoin policy and regulatory frameworks accelerated notably following actions taken by governments and legislative bodies. In the United States, policy momentum shifted significantly after President Donald Trump signed the GENIUS Act into law in July 2025.

The landmark legislation served as a catalyst, sparking broader legislative and regulatory discussions regarding stablecoins in various other jurisdictions that are actively developing their own digital asset strategies. For instance, Hong Kong implemented its comprehensive Stablecoin Ordinance in August 2025 and has recently moved forward by granting its first batch of operational licenses to qualifying entities.

Regulatory scrutiny and interest have also extended to major central banks in Asia. On Wednesday, People’s Bank of China (PBOC) official Wang Xin stated that financial authorities are closely monitoring how stablecoins could potentially impact the international monetary system and influence cross-border payment flows.

Wang’s remarks adopted a measured tone compared to comments previously delivered by PBOC Governor Pan Gongsheng in October 2025. At that time, Pan described stablecoins as high-risk instruments that could be vulnerable to misuse for illicit cross-border transfers. Despite such regulatory concerns, the undeniable demand for efficient cross-border solutions continues to propel the sector forward.

As stablecoin regulations continue to advance and mature globally, private-sector financial firms have rapidly ramped up their efforts to construct reliable infrastructure for international payments. Financial institutions and technology providers alike are eager to capture market share in the evolving digital economy by offering seamless integration between fiat currencies and blockchain assets.

Illustrating this industry-wide momentum, cross-border payout platform MassPay announced a strategic partnership with Coinbase to offer stablecoin-powered international payouts. Executives from the partnering companies noted that the new service is designed to allow customers to easily transition between traditional fiat currencies, USD Coin (USDC), and other digital assets, all while successfully reducing transaction costs and speeding up overall settlement times.

Other major financial infrastructure providers have likewise expanded their proprietary stablecoin offerings through strategic acquisitions and product launches. Financial technology giant Stripe completed its acquisition of stablecoin infrastructure startup Bridge in 2025, absorbing advanced capabilities for digital asset processing. Meanwhile, stablecoin issuer Circle officially launched the Circle Payments Network in May 2025, creating a dedicated framework designed to connect traditional banks, payment companies, and digital wallets for real-time cross-border settlement using stablecoins.