Trace Finance, a prominent stablecoin settlement infrastructure company specializing in cross-border payments, has successfully raised $32 million in a Series A funding round. The investment was led by CoinFund, with participation from several high-profile institutional backers and industry leaders, highlighting the growing momentum behind blockchain-based financial networks.
The company announced the funding round in a statement shared on Wednesday, revealing that Coinbase Ventures, Jump Capital, and Paxos were among the prominent investors joining CoinFund in the syndicate. HOF Capital, which previously led Trace Finance’s seed round in 2022, also participated in the Series A financing, reflecting continued confidence from early backers.
Trace Finance provides integrated banking, foreign exchange, and stablecoin settlement infrastructure specifically tailored for cross-border payments across Latin America. According to the company, it has already processed more than $10 billion in cumulative transaction volume. With the fresh capital secured from this latest funding round, Trace Finance plans to aggressively expand its operational footprint across Latin America, the United States, and the Asia-Pacific markets, targeting regions with high demand for efficient cross-border liquidity and settlement solutions.
The injection of capital arrives at a critical juncture for the financial technology sector, as stablecoin settlement rapidly transitions from a peripheral cryptocurrency use case into mainstream, regulated financial infrastructure. Across the global financial ecosystem, technology firms, fintech startups, and traditional financial institutions are racing to bridge the gap between blockchain-based payments and legacy local banking systems and foreign exchange networks.
This latest institutional backing represents a significant scaling milestone for Trace Finance compared to its earlier development stages. In 2022, the company raised $4.3 million in a seed funding round led by HOF Capital, which also featured participation from Circle Ventures and Mantis VC, the venture capital firm co-founded by electronic music duo The Chainsmokers.
The broader stablecoin market has expanded dramatically alongside these infrastructural developments, with the total stablecoin market capitalization standing at approximately $315 billion, according to data from DeFiLlama. This massive valuation underscores the growing utility of digital tokens pegged to fiat currencies in facilitating international commerce, treasury management, and liquidity transfers.
Stablecoin Regulation Drives Cross-Border Payments Push
The accelerating adoption of digital assets and the development of institutional settlement rails are closely tied to shifting regulatory landscapes around the world. Stablecoin policy discussions have accelerated globally following major legislative milestones, most notably when United States President Donald Trump signed the GENIUS Act into law in July 2025.
The passage of the GENIUS Act served as a powerful catalyst, spurring renewed discussions around comprehensive stablecoin laws in various global jurisdictions that are actively developing their own digital asset strategies to remain competitive in the digital economy. Among these, Hong Kong implemented its official Stablecoin Ordinance in August 2025 and has recently moved forward by granting its first batch of regulated stablecoin licenses, establishing a clear legal framework for issuers and service providers operating within the special administrative region.
Meanwhile, traditional central banking authorities are intensifying their scrutiny and evaluation of digital tokens. On Wednesday, People’s Bank of China (PBOC) official Wang Xin stated that Chinese authorities are closely monitoring how stablecoins could potentially affect the international monetary system and cross-border payments. Wang’s remarks struck a notably more measured tone compared to comments made by PBOC Governor Pan Gongsheng in October 2025, when Pan publicly described stablecoins as high-risk instruments that remain vulnerable to misuse for illicit cross-border transfers.
As stablecoin regulations continue to advance and mature across different geographies, private-sector financial firms have correspondingly ramped up their efforts to build robust infrastructure capable of supporting seamless cross-border payments. The race to capture market share in this burgeoning sector has led to numerous strategic partnerships and corporate acquisitions among leading fintech and cryptocurrency companies.
Just last week, cross-border payout platform MassPay announced a strategic partnership with Coinbase designed to offer stablecoin-powered international payouts to enterprise clients. Executives from both companies noted that the newly established service is intended to enable customers to move fluidly between traditional fiat currencies, USD Coin (USDC), and other digital assets while significantly reducing operational costs and accelerating settlement times compared to traditional wire transfers.
Other major financial infrastructure providers have likewise moved swiftly to expand and solidify their stablecoin offerings through acquisitions and proprietary network launches. Technology giant Stripe completed its acquisition of stablecoin infrastructure startup Bridge in 2025, integrating advanced programmable payments and stablecoin acceptance capabilities into its merchant ecosystem. Similarly, Circle introduced the Circle Payments Network in May 2025, a dedicated payments network built to connect commercial banks, payment companies, and digital wallets, facilitating real-time cross-border settlement using regulated stablecoins.
Crypto Startups & Venture Capital
Crypto Startups & Venture Capital
Crypto Startups & Venture Capital
