Trace Finance announced a $32 million Series A financing round led by CoinFund, with participation from Coinbase Ventures, Haun Ventures, Jump Crypto, Valor Capital, Paxos, HOF Capital and several other strategic investors. The company said the new capital will be used to scale its regulated banking and stablecoin settlement infrastructure beyond its Brazilian stronghold into the United States, additional Latin‑American markets and the Asia‑Pacific region. This expansion is being driven by recent regulatory changes that re‑classify institutional cross‑border virtual‑asset flows as foreign‑exchange transactions, effectively pushing large‑volume players onto bank‑grade rails—exactly the segment Trace Finance has built for.
The funding also supports the development of new settlement products that sit on top of Trace’s regulated banking layer, aiming to deepen the connection between local financial systems and global stablecoin liquidity. Co‑founder and CEO Bernardo Brites emphasized that “stablecoins alone do not solve cross‑border payments. Stablecoins plus regulated local bank infrastructure does,” underscoring the company’s belief that a hybrid on‑chain/off‑chain model is essential for institutional adoption.
Trace Finance Secures $32M Series A Led by CoinFund
The $32 million round was anchored by CoinFund and attracted a roster of high‑profile backers, including Chainlink Labs, SNZ Capital, and founders from Circle, Solana Labs, Mesh and Itaú Unibanco. In addition to the lead investors, the round featured participation from Coinbase Ventures, Haun Ventures, Jump Crypto, Valor Capital, Paxos, HOF Capital and other ecosystem players.
Trace Finance will allocate the proceeds across several priority areas:
- Transaction capacity and product depth – expanding FX handling, bank connectivity, compliance tooling and stablecoin settlement features to support larger enterprise clients.
- Geographic footprint – extending its regulated infrastructure from Brazil into the United States, other Latin‑American corridors and key Asia‑Pacific jurisdictions identified as high‑growth markets.
- New settlement solutions – building regulated settlement products that leverage its banking layer to bridge local financial ecosystems with global stablecoin liquidity, thereby offering a compliant alternative to legacy payment rails.
The company also highlighted that the round will help it target “large global enterprises” that require a trusted, bank‑grade bridge for on‑chain settlement, positioning Trace as a one‑stop infrastructure provider for fintechs, exchanges, international banks and multinational corporations.
Brazil as a Proof Point for Regulated Cross‑Border Payments
Brazil is recognized as one of the top five countries worldwide for stablecoin infrastructure concentration. Recent regulatory guidance re‑classified virtual‑asset cross‑border flows as foreign‑exchange operations, a shift that moves institutional volume away from non‑bank providers toward regulated, bank‑grade solutions. Trace Finance’s stack was originally engineered to meet Brazil’s notoriously complex FX, compliance and payment‑rail requirements, including integration with the Pix instant‑payment system.
To date, Trace has processed more than $10 billion in cross‑border volume and serves as the primary infrastructure provider for the top four global payment providers operating in Latin America, notably dLocal. This deep integration demonstrates the company’s ability to navigate stringent regulatory environments while delivering high‑throughput, low‑cost settlement. The Brazilian success story provides a replicable template for other corridors where similar regulatory realignments are encouraging institutions to seek bank‑linked stablecoin bridges.
Market Signal: Institutional Preference for Bank‑Grade Stablecoin Bridges
Einar Braathen, Partner at CoinFund, remarked that “the next phase of global money movement will be won by companies that can bridge on‑chain settlement with trusted local banking systems.” The Series A therefore signals strong investor confidence that regulated infrastructure can capture the growing institutional appetite for stablecoin‑enabled payments, especially as jurisdictions tighten rules around virtual‑asset flows. By offering a compliant, cost‑effective layer that links global stablecoin liquidity with local banks, Trace Finance aims to challenge legacy correspondent‑bank networks and provide a faster, more transparent alternative for cross‑border transactions.
Key Takeaways
- Trace Finance raised $32 million in a Series A round led by CoinFund, with participation from Coinbase Ventures, Haun Ventures, Jump Crypto, Valor Capital, Paxos, HOF Capital and others.
- The company has processed more than $10 billion in institutional cross‑border volume and is the main provider for the top four global payment providers in Latin America, including dLocal.
- Brazil’s recent classification of virtual‑asset cross‑border flows as foreign‑exchange operations has shifted institutional volume toward regulated, bank‑grade infrastructure, a trend Trace Finance is leveraging for its global expansion.
FinanceInsyte's Take
The financing underscores growing investor belief that regulated, bank‑linked stablecoin bridges can meet rising institutional demand for compliant cross‑border payments. Trace Finance’s expansion into the U.S., APAC and additional Latin American markets will test whether its Brazil‑built model can scale under diverse regulatory regimes. Executives should monitor how the company’s new settlement products perform and whether further policy changes in other jurisdictions create similar incentives for regulated infrastructure.
Source: Businesswire
