Why Non-USD Stablecoins Need Sovereign Debt Onchain

In this episode, David Taylor, co-founder of Etherfuse, breaks down why stablecoins alone can't serve the rest of the world and how sovereign debt onchain is the missing infrastructure. After four years of building in Mexico when the rest of the industry said non-US stablecoin infrastructure wasn't worth pursuing, Etherfuse has issued yield-bearing sovereign debt tokens across 7 countries, with over 100 planned by end of 2026.

The conversation covers how Etherfuse partnered with Brale to create the cheapest way to send money to Mexico through a Mexican peso stablecoin backed by sovereign debt, why stable bonds — not just stablecoins — are required to bring liquidity to non-US currency markets onchain, and how the infrastructure unlocks FX, yield, hedging, and multi-currency accounts that neobanks and fintechs are already integrating.

David also explains how Etherfuse is consolidating from local custodians to major institutional partners like BBVA and Shinhan Bank to scale from 7 to 100+ currencies, why stable bonds serve as efficient collateral for regional credit card products without the FX drag that dollar-denominated cards face in Latin America, and what it took to survive four years as a contrarian bet when every VC was funding US-centric stablecoin companies.

Key Timestamps:

00:00 - "Everyone has fundamentally still today disagreed that stablecoin infrastructure will be a thing for foreign countries"
01:15 - David Taylor Introduction
05:50 - Sovereign Debt Onchain: The Original Thesis
08:32 - Etherfuse Today: 7 Countries, 100+ by 2026
16:03 - Brale Partnership: Mexican Peso Stablecoin
18:10 - How Stable Bonds Work: Synthetic Pointers to Real Bonds
20:51 - Choke Point: When JPMorgan Blocked Their Banks
26:02 - "Stablecoins Are Not Enough": The Paper
31:09 - Neobanks, Embedded Crypto, and Multi-Currency Accounts
33:49 - "AWS of Sovereign Debt": Etherfuse's Positioning
38:56 - Stable Bonds as Regional Card Collateral

Whether you're building stablecoin infrastructure for non-US markets, exploring how sovereign debt onchain changes the DeFi liquidity equation, or trying to understand why the next wave of stablecoins won't all be dollars, this episode delivers the operational clarity that most stablecoin conversations skip.

This season is powered by Brale

With Brale, you can launch stablecoins in minutes and actually make them usable. Their single API unifies licensing, custody, on-ramps and off-ramps. They're the stablecoin issuer for emerging ecosystems like Canton and Radius, and core infra for payments teams like Coinflow, Rain, and hundreds of others.

Learn more at brale.xyz

Guest: David Taylor, Co-Founder at Etherfuse
Host: Drew Rogers
Follow Stabledash on X: @stabledash
Follow Etherfuse on X: @etherfuse
Follow David on X: @EtherfuseDave

#Stablecoins #Etherfuse #SovereignDebt #StableBonds #NonUSD #DeFi #Crypto

The content of this podcast is for informational purposes only and does not constitute financial, investment, or legal advice.