- White Star Capital and North Island Ventures co-led a $3 million seed round that Etherfuse successfully raised.
- According to co-founder and CEO David Taylor, Etherfuse has raised $5 million total with this round and is valued at $12.5 million.
In a seed fundraising round, the tokenization platform for real-world assets (RWAs), Etherfuse, has raised $3 million.
According to Etherfuse on Saturday, the financing was co-led by White Star Capital and North Island Ventures, with participation from Stellar XLM -1.40% Development Foundation, FunFair Ventures, Department of XYZ, Alice Ann Schwartz of Rising Tide Network and Anna Yuan of Solana SOL +4.51% Foundation.
David Taylor, the co-founder and CEO of the firm said that it finished its seed round in May after starting to raise money in January. According to Taylor, a former engineering executive at Apple and Boeing, Etherfuse’s valuation increased to $12.5 million as a result of the funding round, which was structured as a simple agreement for future equity (SAFE).
Taylor continued, “Etherfuse now has $5 million in total funding thanks to this seed round.” Previously, the firm used SAFE to raise $2 million from friends and relatives in a pre-seed round.
Etherfuse: What is it?
Taylor co-founded the RWA tokenization platform Etherfuse with his brother AJ. The platform is dedicated to tokenizing assets in emerging markets. We moved to Mexico because we thought we could create a tokenized bond product there because we didn’t think the U.S. would allow us to experiment on goods that would be seen as securities, according to Taylor. Right now, we are the only yield-bearing asset in the world with pesos denominated in Mexico.
As of right now, Taylor stated, Etherfuse offers four short-term tokenized debt products: tokenized U.S. Treasurys, tokenized Brazilian National Treasury Notes (NTS), tokenized Mexican Federal Treasury Certificates (CETES), and tokenized Spanish and German European Union bonds. Since these tokenized goods are tokenized representations of actual bonds issued by sovereign bodies, Etherfuse refers to its tokenized products as stablebonds.
Taylor claims that there are already about 10,000 Stablebond owners on Etherfuse, with a $2 million locked value overall on the site.
Plans for Etherfuse
As of right now, the Etherfuse tokenization platform is operational on the Base, Stellar, and Solana blockchains, with plans to support additional networks soon.
Etherfuse also intends to tokenize additional resources. According to Taylor, the platform hopes to have more than 3,500 RWAs in the next 18 months, including short-term debt from the majority of governments and everything that is listed on the Mexican stock exchange.
According to Sep Alavi, general partner at White Star Capital, “the vision is for Etherfuse to not only capture, but to expand the emerging bond market by removing the myriad barriers that currently prevent people and businesses from accessing the high, real, and safe yields that these assets provide.” App developers, especially those working with stablecoins, are greatly aided by having access to an API to the blockchain world that links to some of the safest investment assets. This allows developers to create more stable, higher-yield, and safer products on the blockchain.
In addition to co-leading the startup’s seed financing, Alavi has joined the board of directors of Etherfuse, according to Taylor.
At Etherfuse, there are now six employees, and Taylor intends to bring on two more for growth or community development roles. Taylor responded that Etherfuse has no plans to launch its own native coin in the future when asked about such ambitions.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
