In Brazil, the PIX payment system enables domestic fund transfers within seconds, yet converting Brazilian Reais (BRL) to US dollars for international settlement traditionally incurs a 3-to-5-day delay. Trace Finance, a financial infrastructure firm founded by a Brazilian team, targets this latency by bridging local payment rails with global stablecoin networks. On June 16, 2026, the company finalized a $32 million Series A financing round, signaling a strategic push to expand its compliant cross-border services beyond Brazil into other emerging markets. Data compiled by Woofun AI indicates that this capital injection follows a period of intense consolidation in the stablecoin infrastructure sector, where major players like Stripe and Mastercard have recently acquired specialized providers for billions of dollars.

The company's operational thesis, articulated by CEO Bernardo Brites, posits that stablecoins alone cannot resolve cross-border friction without regulated local banking infrastructure. While assets like USDC facilitate rapid, low-cost transfers, they require conversion into local fiat currencies before final deposit. Trace Finance addresses this gap by offering multi-currency accounts supporting BRL, USD, and EUR, alongside real-time conversion channels that process BRL to USDC swaps in under 1 minute. The platform currently supports cross-border payments across 15 countries, integrating with local networks including PIX, SPEI, ACH, and SEPA. To date, the firm has processed over $10 billion in institutional transactions, securing its position as one of the top four infrastructure providers in Latin America.

The payment workflow operates through a three-step mechanism designed for speed and compliance. First, Brazilian enterprises initiate requests via API, moving funds from PIX into Trace Finance's local bank account in less than 1 minute, available 24/7. Second, the firm locks in exchange rates and converts BRL into USDC, utilizing multiple sources to ensure optimal execution for both small and large-scale trades. Third, the converted stablecoins are settled globally via blockchain; if the recipient requires fiat, Trace Finance leverages partner banks in Mexico, Colombia, Europe, or Asia to convert and deposit funds locally. This model relies heavily on the company's possession of financial licenses in both the United States and Brazil, enabling compliant capital flows that bypass traditional banking delays.

The $32 million Series A was led by CoinFund, with participation from Coinbase Ventures, Haun Ventures, Jump Capital, Valor Capital, Paxos, HOF Capital, Chainlink Labs, and SNZ Capital. Although the post-money valuation remains undisclosed, Brites noted the round represents a 10x increase from the $4.3 million seed funding secured in 2022. As part of the agreement, CoinFund partner Einar Braathen joined the board, alongside angel investors including Circle co-founder Sean Neville, Solana Labs co-founder Anatoly Yakovenko, and Itaú Unibanco vice chairman Ricardo Villela Marino. Woofun AI notes that this investor lineup underscores the growing institutional confidence in regulated stablecoin bridges as a critical layer for global finance.

Regulatory dynamics in Brazil present a complex backdrop for this expansion. In November 2025, the Brazilian Central Bank enforced strict licensing, asset separation, and AML/KYC rules effective February 2026.

However, a subsequent announcement in May 2026 stipulated that starting October 2026, electronic foreign exchange providers would be barred from using stablecoins for cross-border payments, mandating the use of traditional FX channels or non-resident BRL accounts. These policies clarify that while individual crypto trading is permitted, financial institutions face defined boundaries. Despite these constraints, the Latin American crypto market surged, with transaction volumes reaching $730 billion in 2025, a 60% year-over-year increase driven largely by $324 billion in stablecoin activity, an 89% rise.

Trace Finance is positioned to navigate this tightening landscape by providing the necessary compliance infrastructure for institutions. The firm plans to prioritize expansion within Latin America, targeting Mexico, Colombia, and Argentina, before entering the Asia-Pacific region, including Singapore, Hong Kong, Japan, South Korea, and Southeast Asia. The company aims to secure additional licenses in Singapore and the US to bolster its compliance framework. Woofun AI analysis suggests that as Brazil classifies cross-border virtual asset payments as foreign exchange transactions, institutional demand will shift toward licensed providers like Trace Finance, away from non-bank intermediaries. With the global stablecoin market valued at approximately $315 billion, the firm's ability to replicate its Brazilian success in diverse regulatory environments will define its global competitiveness against giants like Stripe and Coinbase.