Trace Finance has raised $32 million in Series A funding, led by CoinFund, to expand its services amid Brazil's new crypto regulations.
Trace Finance Raises $32 Million
Trace Finance, a New York-based company that connects Brazilian and U.S. banks to stablecoin settlement networks, has successfully secured $32 million in a Series A funding round. The round was primarily led by CoinFund, with significant investments from Coinbase Ventures, Haun Ventures, Jump Capital, and others.
Institutional Shift in Brazil
This funding comes at a pivotal moment as Brazil has recently reclassified cross-border cryptocurrency transactions as foreign-exchange operations. This regulatory change is prompting a shift of institutional investments from unregulated crypto platforms toward licensed entities like Trace Finance.
Expansion Plans
Trace Finance plans to utilize the new funds to expand its operations beyond the U.S.-Brazil corridor into other regions within Latin America, as well as the U.S. and Asia-Pacific markets. The company claims to have facilitated over $10 billion in cross-border transactions and collaborates with major payment firms in Latin America, including dLocal.
Leadership Insights
Co-founder and CEO Bernardo Brites emphasized that the integration of stablecoins with traditional banking systems is crucial, stating, "Stablecoins alone do not solve cross-border payments. Stablecoins plus regulated local bank infrastructure does." He believes the investment will enhance the banking and compliance frameworks necessary for fintechs and banks to connect digital settlements with reliable local systems.
Strategic Investors Join the Round
The funding round also saw participation from notable figures in the crypto space, including Chainlink Labs and individuals like Sean Neville from Circle and Anatoly Yakovenko from Solana Labs. According to CoinFund Partner Einar Braathen, Trace Finance is poised to lead in bridging on-chain settlement with local banking systems in Brazil, which is known for its complex payment landscape.
This successful funding follows a seed round in 2022 led by HOF Capital, and Trace Finance is now focused on developing additional settlement products to further strengthen its ties with banks in Brazil and beyond.
