🇲🇽 A New Way to Earn Yield

Real problems. Real solutions. Real data. This is Frontera.

Your weekly dose of data-driven crypto insights from the Latin American frontier. Trusted by leaders at Bitso, Binance, the Solana Foundation, the Ethereum Foundation, and more.

This is where you start if you’re building, investing, or scaling in LatAm.

Reading this by email? Click Read Online in the top right corner to view the full edition. Or listen to the full episode here. 

This Edition is Presented by Bitso’s Stablecoin Conference

Frontera is an official media partner of Bitso’s Stablecoin Conference 2025.

We’ll be on the ground in Mexico City this August 27–28, covering the builders, the breakthroughs, and ideas reshaping LatAm’s financial future.

Use the code FRONTERA10 for 10% off your ticket here. See you there.

🌾 From Bank to Blockchain

In Latin America, it's easier to buy a memecoin than a treasury bill. 

I'm not kidding, it's true! 

My friends are out there gambling on Chillhouse (a second-derivative memecoin) and twelve-legger parlays where the last bets are Getafe beating Real Madrid and the Cleveland Browns winning the Super Bowl.

Take Mexico: its bond market is LatAm’s second largest at over $623B, yet, ordinary Mexicans hardly participate. In fact, just 2% of Mexican government bondholders are citizens, underscoring how everyday savers are locked out of their own country's risk-free yield. 

Meanwhile, crypto has made it trivially easy to buy a random token on a smartphone. 

This gap, between government bonds and everyday people, is what Etherfuse aims to bridge. And it’s part of what we at Frontera call The Local Stablecoin Thesis: the idea that crypto should speak the language of local economies, not just dollarize them.

In short, Etherfuse is putting Mexican treasury bills onchain. They've built a new model for public debt distribution, one that could reshape how people in emerging markets interact with their national treasuries.

And today, I'll walk you through it. 

⛓️ What’s Etherfuse?

Etherfuse is a startup bringing treasury markets to the blockchain. Their core product, Stablebonds, tokenize government bonds and make them accessible via crypto rails.

They’re not a synthetic asset, just a slice of real sovereign yield, served in a wallet-friendly plate.

Stablebonds are backed 1:1 by short-term debt instruments, and Etherfuse offers CETES, USTRY, TESOURO, EUROB, and GILTS, combining the security of public debt with the usability of stablecoins.

Part of what sets Etherfuse apart is regulation: they operate under a government-approved sandbox in Mexico, making them one of, if not the first, project in the region to issue tokenized bonds with legal clarity.

Founded by David Taylor (ex-Apple, ex-MIT) and AJ Taylor (they're cracked), Etherfuse raised a $3M seed round in 2024 to fulfill their mission: democratize access to financial assets. And in doing so, they’re positioning sovereign yield, not just dollars, as crypto’s next big unlock for emerging markets.

🧩 What’s New and Why it Matters

Etherfuse has been around since 2021. But this week, they rolled out a game-changing feature: direct on/off-ramping from Mexican bank accounts to tokenized government bonds.

Users can now go from pesos to Stablebonds, yield-bearing, crypto-native representations of CETES, in just a few clicks. 

Forget about stablecoin middlemen and DeFi gymnastics. Fugayzi, fugazi. It's a whazy. It's a woozie. It's fairy dust. These don't exist here.

Why does this matter? 

First, it offers frictionless access to safe yield. Mexico’s 28-day CETES currently yield around 8% annually, a near risk-free return, historically reserved for institutions or those with brokerage accounts.

By going onchain, Etherfuse gives every Mexican with a bank account a shot at the same yield big institutions get.

Second, this expands the very definition of a stablecoin. Until now, “stablecoin”, in LatAm has basically meant a USD-pegged token used as a dollar substitute. That’s useful for stability, but it deepens dollar reliance and sidelines local monetary systems.

Etherfuse’s Stablebond is a different breed: a crypto asset backed by local sovereign debt, denominated in local currency, and accruing local interest. It's a bet that local stablecoins with yield can thrive alongside (or beyond) dollar stablecoins. 

In practice, an MXN Stablebond could be used for payments, remittances, or savings, all without ever touching USD. This truly local approach could plug crypto directly into the domestic economy.

📱 Product Review

The Etherfuse team was kind enough to send me 1,000 MXN in CETES to test their product. 

So let's do it.