Trace Finance banks $32M to make stablecoins the new wire transfers 🌎

Trace Finance, a stablecoin settlement infrastructure company focused on cross-border payments, has closed a $32 million Series A funding round led by CoinFund, with participation from Coinbase Ventures, Jump Capital and Paxos, the company said Wednesday in a statement shared with Cointelegraph. HOF Capital, which led the company's 2022 seed round of $4.3 million, also returned for the Series A. That earlier round included Circle Ventures and Mantis VC, the venture firm co-founded by electronic music duo The Chainsmokers.

The New York-based firm provides banking, foreign exchange and stablecoin settlement infrastructure for cross-border payments across Latin America and said it has processed more than $10 billion in transaction volume to date. The fresh capital will be used to expand operations across LatAm, the United States and Asia-Pacific markets, according to the company.

The raise lands as stablecoin settlement increasingly migrates into regulated financial infrastructure, with firms racing to connect blockchain-based payments to local banking systems and foreign exchange networks. Total stablecoin market capitalization stood at about $315 billion, according to DeFiLlama.

Stablecoin policy debates have accelerated globally since US President Donald Trump signed the GENIUS Act into law in July 2025. 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 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.

Private-sector infrastructure builds have kept pace. Last Thursday, cross-border payout platform MassPay partnered with Coinbase to offer stablecoin-powered international payouts, allowing customers to move between fiat currencies, USDC and other digital assets while reducing costs and speeding settlement. Stripe acquired stablecoin infrastructure startup Bridge in 2025, and 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.