Etherfuse | Bluechip

CETES by Etherfuse is backed by bonds issued by the Federal Government of Mexico. With a typical maturity of 7 days, they carry minimal duration risk. For users who don’t denominate assets in MXN, the bonds also carry sovereign credit risk and currency risk.
Reserves backing CETES are held across regulated custodians in Mexico. A majority of reserves are held by Banco Bilbao Vizcaya Argentaria, better known as BBVA Mexico. Etherfuse publishes monthly attestations, including a breakdown by each custodian.
Reserves are operationally segregated from Etherfuse corporate funds. The issuer accepts deposits “in administration” as a custodian of the funds. All transactions related to reserve management take place in segregated accounts.
Etherfuse owns the underlying assets while customers own tokens that represent a claim on those assets. Many key elements of bankruptcy remoteness are present, but the lack of legal precedent and regulatory clarity in Mexico introduces residual uncertainty.
While secondary markets for CETES do exist, they are limited by liquidity. All users onboard directly with Etherfuse to access the primary market at net asset value.
Etherfuse is registered with Mexico's financial intelligence unit but does not have a prudential regulator. The issuer publishes monthly attestations of reserves, and completed an unqualified financial audit for financial year 2024.
Suitability - CETES is suitable for non-US, institutional or retail users who can complete a KYC process and want to invest in short-term Mexican government bonds in an onchain format.

The following outcomes outside the issuer’s control may improve factor scores.

Mexico implements legislation that specifically addresses issuers of tokenized bond products.
Mexico receives a higher score in the World Justice Project’s Rule of Law factors.

CETES is backed by short-term bonds issued by the Mexican government. Reserves are held in segregated accounts by regulated custodians, primarily BBVA Mexico.

However, legal uncertainty in Mexico around bankruptcy remoteness presents residual risk.

Etherfuse, founded by experienced engineers David Taylor and AJ Taylor, is registered in Mexico.

The World Justice Project’s Rule of Law Index ranks Mexico 121st out of 143 countries.

This factor evaluates technical implementation using indicators like smart contract quality, oracle risk, exploit history, and more.

Currently, we do not assign a standalone score to this factor. An independent assessment of technical risk will be included in future iterations.

This factor evaluates censorship resistance using indicators like regulatory oversight, asset custody, and governance controls.

Decentralization is not a key objective for Etherfuse, who prioritizes compliance more than decentralization. Therefore, this factor is not assessed.

Etherfuse governance relies on contractual protections without specific tokenized bond regulations in Mexico. Monthly attestations by BHR Mexico and annual audits ensure transparency.

Users are only eligible to redeem CETES at the end of the bond’s maturity period.

This factor evaluates external feedback using indicators like prediction markets, social sentiment, perpetual futures, and more.

Currently, we do not assign a standalone score to this factor. An independent assessment of external feedback will be included in future iterations.