Trace Finance, a stablecoin payments infrastructure firm, raised $32 million in a Series A funding round that closed in December, the company announced Wednesday. The round was led by CoinFund, with participation from Coinbase Ventures, Haun Ventures, Jump Capital, Paxos, Chainlink Labs, HOF Capital, and others, alongside angel investors including Circle co-founder Sean Neville and Solana Labs co-founder Anatoly Yakovenko. The funding will support Trace Finance's expansion across Latin America and the Asia-Pacific region. The raise comes amid growing investment activity in stablecoin infrastructure following the passage of the U.S. stablecoin legislation GENIUS Act in July last year and rising institutional adoption of stablecoin payment systems.
CoinFund Leads $32 Million Series A Round for Trace Finance
Brazil-based Trace Finance began raising for the equity round at the end of last summer and closed it in December, co-founder and CEO Bernardo Brites told The Block. Brites said Trace's valuation has grown about 10x since its 2022 seed round valuation, when it raised $4.3 million, though he declined to disclose a specific figure. As part of the deal, CoinFund Partner Einar Braathen took a board seat at Trace Finance, Brites said. Angel investors in the round also included Mesh co-founder and CEO Bam Azizi and Itaú Unibanco (Latin America's largest bank) partner and vice chairman Ricardo Villela Marino.
Stablecoin Infrastructure Deal Activity Accelerates
Investment activity around stablecoin infrastructure continues to grow, especially after the passage of the U.S. stablecoin legislation GENIUS Act in July last year and amid rising institutional adoption. Deal activity has also increased. Stripe acquired stablecoin infrastructure platform Bridge for about $1.1 billion last year, while Mastercard has agreed to acquire stablecoin infrastructure provider BVNK for up to $1.8 billion, subject to approvals. The deals highlight growing demand for infrastructure that connects stablecoins with traditional banking and payment systems.
Trace Finance Operates Under U.S. and Brazil Licenses
Brites said Trace Finance offers regulated infrastructure, with the firm operating under licenses in the U.S. and Brazil, as well as through partner banks in Mexico, Colombia, Europe and Asia. "We are going to pursue additional licenses in Singapore, the U.S. and APAC as part of our strategy going forward," Brites said. He added that the company plans to expand operations in Mexico, Colombia and Argentina before moving into Singapore, Hong Kong, Japan, South Korea and Southeast Asia. Connecting the U.S. and Brazil served as the company's initial market, where it built infrastructure combining local banking rails, foreign exchange, compliance, and stablecoin settlement. Brazil recently classified cross-border virtual asset payment flows as foreign exchange operations, a move that, according to Trace Finance, will push institutional activity toward regulated bank-grade infrastructure providers. "Stablecoins alone do not solve cross-border payments. Stablecoins plus regulated local bank infrastructure do," said Brites. "We built Trace bridging the U.S. to Brazil and are now extending that infrastructure across LatAm and other emerging markets."
Trace Finance Processed $10 Billion in Cross-Border Volume
Founded in 2021, Trace said it has processed more than $10 billion in institutional cross-border volume to date and is the main infrastructure provider for the top four global payment providers operating in Latin America, including dLocal. Brites declined to identify the other three partners because of contractual agreements. Trace also has new settlement products in development, though Brites did not provide additional details. The company has also grown its headcount from 25 employees at the start of the year to 48 today, Brites said.
FAQ
What did Trace Finance announce on Wednesday?
Trace Finance announced it raised $32 million in a Series A funding round led by CoinFund, with participation from Coinbase Ventures, Haun Ventures, Jump Capital, Paxos, Chainlink Labs, HOF Capital, and angel investors including Circle co-founder Sean Neville and Solana Labs co-founder Anatoly Yakovenko. The round closed in December after the company began raising at the end of last summer.
Why is Trace Finance expanding into Latin America and Asia-Pacific?
Co-founder and CEO Bernardo Brites said the company plans to expand operations in Mexico, Colombia and Argentina before moving into Singapore, Hong Kong, Japan, South Korea and Southeast Asia. Trace Finance operates under licenses in the U.S. and Brazil and through partner banks in Mexico, Colombia, Europe and Asia, positioning itself to serve growing institutional demand for regulated stablecoin payment infrastructure in emerging markets.
How much institutional volume has Trace Finance processed?
Trace Finance said it has processed more than $10 billion in institutional cross-border volume to date since its founding in 2021. The company is the main infrastructure provider for the top four global payment providers operating in Latin America, including dLocal, though co-founder Bernardo Brites declined to identify the other three partners due to contractual agreements.
