Trace CEO: We Built A $10B Volume Stablecoin Company (How We Did It)
Exploring Stablecoins with Bernardo Brites
Introduction to Trace Finance
- The episode features Bernardo Brites, CEO of Trace Finance, a fintech platform focused on cross-border payments and stablecoin infrastructure in Brazil and Latin America.
- Before founding Trace in 2020, Brites operated a successful crypto trading desk in Brazil and has extensive experience in blockchain projects.
The Growth of Stablecoins
- Brites discusses the significant growth of stablecoins, particularly Tether and Circle, emphasizing their role in expanding US dollar dominance globally.
- He notes that the interest in stablecoins is driven by practical use cases rather than speculative token appreciation.
Use Cases for Stablecoins in Brazil
- The conversation shifts to Brazil's payment systems, highlighting PIX as an efficient instant payment method that has transformed local transactions.
- Brites identifies the limitations of Brazilian currency (BRL), which cannot be settled outside the country, creating opportunities for BRL stablecoins to facilitate cross-border payments.
Addressing Financial Challenges
- He explains how enabling a BRL stablecoin can bridge domestic liquidity with international currencies like Tether, streamlining cross-border transactions.
- In other Latin American countries facing inflation issues, stablecoins provide a means for individuals to hold assets securely while traveling or conducting international trade.
Vision for Trace Finance
- Brites envisions transforming financial management for companies by allowing them to hold various currencies seamlessly without bureaucratic hurdles.
- He outlines plans for expansion into APAC markets while maintaining operations across multiple regions including the US and Mexico.
Funding and Regulatory Strategy
- Following a $32 million Series A funding round, he emphasizes the importance of regulatory compliance as foundational for scaling operations effectively.
- Building partnerships with established entities is crucial; having experienced team members enhances credibility when engaging with large corporations.
Customer Segments and Revenue Model
- Trace Finance processes payments for major global companies operating within Brazil and Latin America, contributing significantly to its revenue model.
- The company charges a spread on transactions and aims to generate $35 million in revenue this year while remaining profitable.
Future Outlook on Stablecoin Adoption
- Discussing broader trends, Brites reflects on whether US dollar-denominated stablecoins will dominate or if local currencies will gain traction through increased access and liquidity.
Expansion Plans into APAC Markets
- He draws parallels between challenges faced in Latin America and those anticipated in APAC markets but expresses optimism due to existing infrastructure connections.