Trace Finance's $32M Round Signals Stablecoin Infra Demand

Trace Finance has raised $32 million in Series A funding, a round led by CoinFund that draws in Coinbase Ventures, Haun Ventures, Paxos, HOF Capital, Valor Capital, and Jump Capital. The stablecoin payments startup said it has already processed $10 billion in transaction value, with US-Brazil transfers serving as its proving ground.

The company operates in the space between onchain stablecoin settlement and local banking compliance. Brazil's central bank classified cross-border digital asset movement as foreign exchange operations, a move that pushed volume toward regulated infrastructure providers. Trace said that classification created a tailwind for its platform, which handles payments, transfers, and settlement reporting.

The investor syndicate spans crypto venture capital, exchange-backed funds, and strategic players. Coinbase Ventures and Haun Ventures bring exposure to the U.S. crypto ecosystem. Paxos, itself a stablecoin issuer and settlement layer, adds operational credibility. Valor Capital, a Brazil-focused fund, signals local market knowledge. Smaller investors include Chainlink Labs and SNZ Capital, plus individuals such as Circle co-founder Sean Neville, Solana Labs co-founder Anatoly Yakovenko, and Ricardo Villela Marino, a partner at Latin America's largest bank, Itaú Unibanco.

Bernardo Brites, co-founder and CEO, said stablecoins alone do not solve cross-border payments. "What does is adding regulation-compliant services with the local bank ecosystem," he said. That view matches what other payment fintechs have found: onchain transfer speed means little if the receiving bank cannot clear the funds under local foreign-exchange rules.

CoinFund partner Einar Braathen said the winners in stablecoin payments will be those that bridge onchain settlement with compliant local banks. Brazil's regulatory environment gave Trace a head start, he said.

Trace said it is now expanding across Latin America and into Asia-Pacific markets, where similar regulatory debates are under way. The $32 million round gives it the capital to build out that network before larger competitors move in.

Crypto venture funding has been subdued since 2022, making this round's size and participant list a signal of conviction in the regulated payments niche. For the broader stablecoin payments sector, Trace's traction offers a concrete data point. The $10 billion in processed volume shows that demand exists for regulated stablecoin transfers, even if the market is still small relative to traditional wire systems. The regulatory catalyst in Brazil may serve as a template for other jurisdictions. If more countries classify digital asset transfers as FX operations, volume could consolidate around providers like Trace that meet compliance standards.