Coinfund Leads $32M Round in Stablecoin Infrastructure Firm Trace Finance

Stablecoin settlement infrastructure company Trace Finance has raised $32 million in a Series A funding round led by CoinFund.

Coinbase Ventures, Jump Capital and Paxos were among the investors that participated in the round, the company said Wednesday in a statement shared with Cointelegraph.

Trace Finance provides banking, foreign exchange and stablecoin settlement infrastructure for cross-border payments across Latin America. It claims to have processed more than $10 billion in transaction volume and plans to use the fresh capital to expand across LatAm, the US and Asia-Pacific markets.

The funding comes as stablecoin settlement increasingly moves into regulated financial infrastructure, with companies racing to connect blockchain-based payments to local banking systems and foreign exchange networks.

In 2022, Trace Finance raised $4.3 million in a seed round led by HOF Capital, with participation from Circle Ventures and Mantis VC, the venture capital firm co-founded by electronic music duo The Chainsmokers. HOF Capital also participated in the company’s Series A round.

Stablecoin market capitalization stood at about $315 billion. Source: DeFiLlama

Stablecoin regulation drives cross-border payments push

Stablecoin policy discussions accelerated globally after US President Donald Trump signed the GENIUS Act into law in July 2025.

The legislation spurred discussions around stablecoin laws in jurisdictions developing their own digital asset strategies. Hong Kong implemented its Stablecoin Ordinance in August 2025 and has recently granted its first batch of licenses.

On Wednesday, People’s Bank of China (PBOC) official Wang Xin said authorities are closely monitoring how stablecoins could affect the international monetary system and cross-border payments.

Wang’s remarks were less critical than comments made by PBOC Governor Pan Gongsheng in October 2025, when Pan described stablecoins as high-risk and vulnerable to misuse for illicit cross-border transfers.

As stablecoin regulations advance globally, private-sector firms have also ramped up efforts to build infrastructure for cross-border payments.

Last Thursday, cross-border payout platform MassPay partnered with Coinbase to offer stablecoin-powered international payouts. The companies said the service would allow customers to move between fiat currencies, USDC and other digital assets while reducing costs and speeding up settlement times.

Other financial infrastructure providers have also expanded their stablecoin offerings. Stripe acquired stablecoin infrastructure startup Bridge in 2025, while Circle launched its Circle Payments Network in May 2025 to connect banks, payment companies and digital wallets for real-time cross-border settlement using stablecoins.