Etherfuse

Etherfuse is a financial infrastructure company that brings sovereign government debt on-chain. Founded in May 2021 by David Taylor, a computer scientist with a background in technology, security, and cryptography, the company set out to solve a straightforward but largely ignored problem: most of the world's population has no practical access to government bonds even when those bonds are issued by their own governments.

Mexico illustrates the gap. The country has the second-largest bond market in Latin America, with more than $623 billion in outstanding debt and $200 million in average daily trading volume. Retail investors account for roughly 2% of that participation. Approximately half of Mexico's population is unbanked, which compounds the exclusion.

Etherfuse's response was to tokenize the bonds entirely, bringing them onto blockchains where they can be bought in amounts as small as the USDC equivalent of one peso, transferred instantly, and used as collateral in DeFi applications without giving up yield.

Stablebonds: How They Work

The company's flagship product line is called Stablebonds (marketed as eYield). Each Stablebond token represents a proportional economic claim on a segregated pool of sovereign-debt assets held in regulated custody. The tokens are valued at the net asset value (NAV) of the underlying pool rather than pegged to any fiat denomination. As the underlying bonds accrue interest, the NAV rises automatically.

Five sovereign instruments are currently available:

• CETES (Mexico, MXN-denominated, approximately 5.5% yield) -- [[TOKEN:CETES7CKqqKQizuSN6iWQwmTeFRjbJR6Vw2XRKfEDR8f]]
• TESOURO (Brazil, BRL-denominated, approximately 11.7% yield) -- [[TOKEN:BRNTNaZeTJANz9PeuD8drNbBHwGgg7ZTjiQYrFgWQ48p]]
• EUROB (European Union, EUR-denominated, approximately 1.8% yield)
• GILTS (United Kingdom, GBP-denominated, approximately 3.5% yield) -- [[TOKEN:GiLTSeSFnNse7xQVYeKdMyckGw66AoRmyggGg1NNd4yr]]
• USTRY (United States, USD-denominated, approximately 3.1% yield)

Orders are placed through the Etherfuse API or dashboard. The company sources the underlying government securities through regulated custodians -- BBVA, Shinhan, and B3 -- each operating in the home jurisdiction of the bond issuer. Once the securities settle in custody, fully reserve-backed tokens are issued to the buyer's wallet. Tokens can be redeemed for fiat at the prevailing NAV on any business day with no lock-up periods and no gates.

On Solana, Etherfuse uses token extensions to implement interest-bearing token accounts. Yield accrues directly to the token's value over time without requiring any manual distribution step.

Sovereign Coins and Payment Infrastructure

Alongside Stablebonds, Etherfuse offers a second product line called Sovereign Coins (eFX), designed for cross-border payment and remittance use cases. The company claims USD-to-MXN conversions at one-tenth the cost charged by traditional banks, with instant settlement and government-backed collateral underpinning the product.

The full platform supports onramp (fiat to token), offramp (token to fiat bank transfer), and swap (token to token) operations through a unified API. A sandbox environment is available for integration testing before production deployment. TypeScript and Rust SDKs are provided for on-chain Stablebond interactions, along with an MCP server for natural language API control.

Stablebonds are deployed across five blockchain networks: Solana, Stellar, Monad, Base, and Polygon.

Security and Attestations

Smart contracts have been audited by OtterSec and Highland Security. The company publishes weekly proof of reserves, maintains real-time dashboards showing live holdings and allocations, and provides on-chain attestations that link every token to a verified real-world position at all times. Customers complete KYC through a hosted identity verification flow.

Revenue comes from variable commissions of 0.25% to 1.5% on yields and from profits on assets purchased with the company's own capital. There are no hidden spreads on the published yield rates.

Regulatory Path

The Etherfuse team engaged Mexico's Ministry of Finance and the CNBV beginning in November 2021, working with the Legal Paradox law firm. The company obtained temporary authorization under Mexico's Regulatory Sandbox model in 2024, and the Stablebonds operate under a reverse solicitation framework that allows for legally transferable tokens. Investors from more than 40 countries have participated since launch.

Ecosystem Position and Recent Developments

Etherfuse is positioned at the intersection of real-world asset tokenization and DeFi infrastructure. Its primary customers are fintechs, neobanks, remittance operators, and corporate treasury teams that need yield-bearing collateral they can hold on-chain and deploy without leaving the blockchain environment. Stablebonds can serve as collateral for on-chain credit products -- a meaningful distinction from tokenized yield that simply sits idle.

In August 2026, Etherfuse announced a four-party memorandum of understanding with Shinhan Asset Management, the Solana Foundation, and Orca to execute a proof-of-concept for a KRW-denominated (Korean Won) tokenized fund covering the full issuance-to-distribution lifecycle. As of that announcement, tokenized government debt from all issuers outside the United States combined totaled $1.25 billion, compared to $16 billion in tokenized US Treasuries alone.

Etherfuse launched publicly in October 2023 at Solana Breakpoint in Amsterdam, where it debuted the CETES Stablebond. The Mexico-first launch had a concrete proof point: for the first time, a retail user anywhere in the world could buy Mexican government bonds in peso-denominated increments -- earning yields on par with institutional investors -- with custody held at BBVA and settlement running on Solana.