Etherfuse, a real-world asset (RWA) tokenization platform, has raised $3 million in a seed funding round.
White Star Capital and North Island Ventures co-led the round. mainly XLM
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Development Foundation, FunFair Ventures, XYZ Division, Anna Yuan Solana 
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Etherfuse announced on Saturday that it will be joining forces with Alice Ann Schwartz of Rising Tide Network.
The startup began raising money for a seed round in January and closed in May, co-founder and CEO David Taylor told The Block. The round was structured as a simple future equity agreement, or SAFE, and valued Etherfuse at $12.5 million, Taylor, a former Apple and Boeing engineering leader, said.
Taylor added that the seed round brings Etherfuse’s total funding to $5 million. The startup had previously raised $2 million pre-seed from friends and family via a SAFE.
What is Etherfuse?
Etherfuse is a RWA tokenization platform co-founded by Taylor and his brother AJ. The platform focuses on tokenizing emerging market assets. “We thought the U.S. wouldn’t allow innovation in products that could be considered securities, so we thought we could go to Mexico and develop a tokenized bond product,” Taylor said. “We are currently the only Mexican peso yield asset in the world.”
Etherfuse currently offers four short-term tokenized debt products: tokenized Mexican Federal Treasury Bonds (CETES), tokenized Brazilian National Treasury Bonds (NTS), tokenized European Union bonds from Spain and Germany, and tokenized U.S. Treasury bonds, Taylor said. Etherfuse calls the tokenized products “stablebonds” because they are tokenized versions of physical bonds issued by sovereign entities.
Taylor said Etherfuse currently has about 10,000 stablebond holders, with the total locked value on the platform being about $2 million.
Etherfuse Plan
The Etherfuse tokenization platform is currently running on the Solana, Stellar, and Base blockchains, with plans to support more networks in the near future.
Etherfuse also plans to tokenize more assets. Taylor said the platform aims to hold more than 3,500 RWAs, including mostly short-term government debt and anything available on the Mexican Stock Exchange within the next 18 months.
“Etherfuse’s vision is to capture and scale the emerging bond market by removing the many barriers that currently prevent people and businesses from accessing the high, substantial and secure yields that these assets provide,” Sep Alavi, general partner at White Star Capital, said in a statement. “Providing an API to the blockchain world that connects to some of the safest investment assets is a huge help to app developers looking to build more secure, yielding and stable products on-chain, including those using stablecoins.”
Taylor said Alavi joined Etherfuse’s board as part of co-leading the startup’s seed round.
Etherfuse currently has six people working on it, and Taylor plans to add two more for community development or growth functions. When asked if Etherfuse plans to issue its own native token in the future, Taylor said there are no plans for the platform to do so.
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