Etherfuse, a platform that seeks to improve decentralized blockchain infrastructure, unveiled ‘Stablebond’, a tokenized bond offering to retail investors in Mexico, at Solana’s Breakpoint Conference in Amsterdam.
The company focuses on Mexico because it is the largest bond market in Latin America after Brazil, according to the company’s research. The market is also one of the most liquid in Latin America, with $623 billion in outstanding debt and an average daily trading volume of $200 million, the study said.
Most of the trading volume in Mexico comes from institutions, governments and foreign investors, according to a press release from Etherfuse, showing a lack of private investors or individuals investing in bonds.
With only 2% of bondholders being Mexican, Etherfuse is trying to change this by offering Stablebonds to retail investors.
Stablebonds are built on Solana and are backed by the Mexican government, the press release said.
This is because tokenizing real-world assets is becoming increasingly popular. According to real-world asset (RWA) monitoring platform RWA.xyz, the tokenized Treasury market has risen to $698 million as of Monday from about $100 million at the start of the year.
“Stablebonds mark an evolution of investment solutions,” said Dave Taylor, CEO and co-founder of Etherfuse, in the statement. “By combining the traditional world of bonds with the innovation of blockchain technology, we are creating a secure and transparent instrument for investors and adding further stability to DeFi and blockchain products,” he added.