Etherfuse Raises $3M to Bring Emerging Market Debt On-chain

Etherfuse, a pioneering platform for the issuance of tokenized real-world assets, announced today that it has successfully raised $3 million in a seed funding round. The round was co-led by White Star Capital and North Island Ventures, with participation from The Department of XYZ, The Stellar Development Foundation, Funfair and angels Alice Ann Schwartz & Anna Yuan. This funding will support Etherfuse in its mission to make global capital markets more efficient and accessible through blockchain technology. 

Etherfuse is building an industry-leading platform for the tokenization of real-world assets. Bringing these assets on-chain offers significant cost, efficiency, and accessibility benefits. Etherfuse has already begun tokenizing emerging market government debt – “Stablebonds” – with an initial focus on Latin America. The Etherfuse team is confident that these bonds will offer yield-bearing, transferable, and composable features in decentralized finance (DeFi). Ultimately, Etherfuse aims to become the largest compliant issuer of a tokenized assets from across the globe.

Etherfuse has undertaken extensive regulatory efforts in Mexico and aims to use this unique legal framework to establish itself as a leading global platform for compliant tokenized assets. The company has launched five products so far, including short-term notes from Mexico and Brazil. Recently, Etherfuse facilitated the creation of a Mexican stablecoin with their tokenized-Cetes Stablebonds, MXNe, in collaboration with stablecoin issuer Brale. Currently, Etherfuse issues assets on the Solana and Stellar blockchains, with plans to expand to additional chains in the future.

Etherfuse is led by CEO David Taylor, an experienced engineer with a background in cryptography at companies including Apple and Boeing. David is joined by his co-founder AJ, who serves as CTO and brings with him engineering background in payments technology. The team is split between Irvine, CA and Mexico City, MX.

"Etherfuse will programmatically provide the needed debt and assets to the next generation of blockchain developers, enabling them to revolutionize the finance world," said David Taylor, CEO at Etherfuse. "These protocols and assets eliminate barriers and intermediaries, granting everyone access to the world's safest investments." 

“The vision is for Etherfuse to not only capture, but to expand the emerging bond market by removing the manifold barriers that currently prevent people and businesses from accessing the high, real, and safe yields that these assets provide. Providing an API to the blockchain world that connects to some of the safest investment assets is hugely enabling for app developers, including those working with stablecoins, looking to build safer, higher-yield, and more stable products on-chain", commented Sep Alavi, General Partner at White Star Capital. "As we have spent significant time with the Etherfuse team, we've been consistently impressed with their dedication and patience, particularly in the complex and arduous regulatory landscape that they are building a moat by navigating'", added Marthe Naudts, Associate at White Star Capital.

"The movement to tokenize traditional financial assets has the potential to transform our capital markets,” said Travis Scher, Managing Partner of North Island Ventures. “We believe that Etherfuse's strong team and innovative approach will establish the company as a leader in bringing the world’s assets on-chain, and we are excited to support Dave and AJ on this journey.” 

About Etherfuse

Etherfuse is an issuer of tokenized real-world assets, with an initial focus on emerging market sovereign debt. By leveraging blockchain technology, Etherfuse aims to improve the efficiency and accessibility of global financial markets. The company's flagship product, Stablebonds, offers a secure, transparent, and accessible investment option, backed by government bonds, and issued under a regulatory framework in Mexico. For more information, please see Etherfuse’s website and Twitter.