Etherfuse CETESPrice

(CETES)

Etherfuse CETES are tokenized short-term debt securities issued by the Mexican Ministry of Finance. These are Mexico's oldest government bonds, playing crucial roles in government financing and providing a secure investment option. Etherfuse transforms these traditional financial instruments into digital "Stablebonds" on the blockchain.

Etherfuse CETES Stablebonds are backed 1:1 by real-world CETES, which are BBB+-rated short-term government bonds denominated in Mexican pesos. Reserves are held in segregated accounts by regulated custodians in Mexico, primarily by Banco Bilbao Vizcaya Argentaria (BBVA Mexico). Etherfuse publishes monthly attestations for transparency, and all brokerages use INDEVAL for secure custody.

Etherfuse CETES offers several benefits, including access to sovereign debt yield, making government bonds accessible to a broader investor base, especially in emerging markets. They provide stability as government-backed securities, acting as a secure investment. These Stablebonds also offer a local currency-denominated stable asset, serving as an alternative to USD-pegged stablecoins. Furthermore, tokenized CETES can enhance utility within the Web3 ecosystem by being integrated as collateral in decentralized finance (DeFi) protocols.

Unlike most stablecoins that are primarily pegged to the US Dollar and don't typically generate yield, Etherfuse CETES is pegged to the Mexican Peso and offers a yield derived from the underlying government bonds. It provides direct exposure to sovereign debt rather than being a synthetic asset.

Users can acquire Etherfuse CETES directly through Etherfuse, with facilitated on/off-ramping from Mexican bank accounts to tokenized government bonds. These tokens are also tradable on decentralized exchanges. Typically, a Know Your Customer (KYC) process is required to access the primary market at net asset value. Etherfuse is developing on multiple blockchain networks to expand accessibility.

Investors in Etherfuse CETES accept the credit risk of lending to the Mexican government and the inflation risk of holding assets denominated in MXN. While elements of bankruptcy remoteness are present, there is some uncertainty due to a lack of legal precedent and regulatory clarity in the nascent tokenized asset space. Onchain secondary markets for CETES may also be limited by liquidity.