Trace Finance secures 32 million dollars in fresh funding! What lies ahead for stablecoins in cross border payments?

Trace Finance, a company developing stablecoin settlement infrastructure for cross border payments, has announced it raised 32 million dollars in its Series A funding round led by CoinFund. According to a statement released Wednesday, the round also saw participation from Coinbase Ventures, Jump Capital, and Paxos.

Expansion plans target three major regions

Trace Finance currently offers banking, foreign exchange, and stablecoin settlement infrastructure for cross border payments across Latin America. The company, which says it has processed over 10 billion dollars in transactions to date, explained that the new capital will be deployed to drive growth in Latin America, the United States, and the Asia Pacific region.

Operating within a financial infrastructure segment focused on integrating blockchain based payments with local banking systems and foreign exchange networks, Trace Finance is part of a space that is rapidly attracting increased investment as regulatory clarity improves.

Previously, Trace Finance raised 4.3 million dollars in a seed round led by HOF Capital in 2022. Backers in that round included Circle Ventures and Mantis VC, co-founded by The Chainsmokers. HOF Capital returned to participate again in this Series A round.

Regulatory momentum boosts stablecoin infrastructure

This funding round comes at a time when stablecoin settlement is increasingly moving into more regulated financial environments. While companies aim to integrate blockchain based payment systems with local banking channels, they are also focused on reducing FX conversion costs and transfer times.

Debate over global stablecoin regulation has accelerated after US President Donald Trump signed the GENIUS Act in July 2025. The act fueled discussions in other jurisdictions also crafting digital asset strategies. Hong Kong, for instance, enacted its Stablecoin Ordinance in August 2025, recently awarding its first group of licenses.

Glossary: Stablecoin settlement refers to the process where a payment, made with a digital dollar like asset, is finalized between parties and transferred to the local financial system. These infrastructures are especially leveraged to speed up and cut costs in international money transfers.

Central banks and the private sector monitor stablecoin trends

Wang Xin, an official with the People’s Bank of China, noted on Wednesday that authorities are closely monitoring the potential effects of stablecoins on the international monetary system and cross border payments. In contrast to the more cautious stance of PBOC Governor Pan Gongsheng, who previously labeled stablecoins as highly risky in October 2025, Wang’s latest remarks framed the issue in a more measured way.

Momentum is equally building in the private sector. Last Thursday, cross border payments platform MassPay launched a stablecoin supported international payment service in partnership with Coinbase. The companies stated this model would simplify transferring between fiat currencies, USDC, and other digital assets while lowering costs and shortening settlement times.

Other financial infrastructure providers are expanding in this sector as well. Stripe acquired Bridge, a developer of stablecoin infrastructure, in 2025. In May 2025, Circle rolled out its Circle Payments Network, bringing together banks, payment companies, and digital wallets for real time international settlement. Meanwhile, the total market value of stablecoins hovers around 315 billion dollars.

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