In a strategic move to enhance its capabilities in cross-border stablecoin settlements, Trace Finance has successfully raised $32 million in a Series A funding round led by CoinFund. This funding comes at a pivotal time when payments firms and policymakers are increasingly focusing on improving digital asset transfers across borders.
Joining CoinFund in this significant investment are notable players, including Coinbase Ventures, Jump Capital, and Paxos. With a mission to streamline banking, foreign exchange, and stablecoin settlements for international payments, Trace Finance has already handled over $10 billion in transaction volume.
Expanding Horizons
The fresh capital will facilitate Trace Finance's expansion into essential markets such as Latin America, the United States, and the Asia-Pacific region. This move aligns with the growing trend of integrating stablecoin technologies within regulated financial infrastructures, enabling smoother connections between blockchain payments and traditional banking systems.
Context: The Rise of Stablecoin Regulation
The funding comes in the wake of global advancements in stablecoin regulation. Since U.S. President Donald Trump enacted the GENIUS Act in July 2025, discussions have intensified around establishing comprehensive regulatory frameworks for stablecoins in various jurisdictions. Subsequently, Hong Kong rolled out its Stablecoin Ordinance in August 2025, granting its first licenses for stablecoin issuance.
In recent weeks, the People’s Bank of China (PBOC) has expressed an interest in analyzing the impact of stablecoins on global monetary systems and cross-border transactions. PBOC official Wang Xin acknowledged the potential of stablecoins in this space, although concerns about their risks remain prevalent.
Industry Developments
As regulatory frameworks for stablecoins develop, financial sector players are ramping up efforts to bolster the infrastructure necessary for seamless cross-border payments. Among the noteworthy partnerships, MassPay recently joined forces with Coinbase to introduce stablecoin-powered international payment solutions aimed at reducing costs and expediting transaction times.
Furthermore, major financial technology companies are also making strides in this domain. Stripe acquired the stablecoin startup Bridge in 2025, while Circle launched its Circle Payments Network to connect banks and digital wallets for real-time cross-border transactions.
As the stablecoin market capitalization reaches approximately $315 billion, the race to innovate and comply with regulation in cross-border payment solutions is more crucial than ever.
For ongoing updates about Trace Finance and the evolving landscape of stablecoin regulations, stay tuned to industry news.
