Nonagon Capital Expands DeFi Operations to One Billion Yen

Expansion of Nonagon Capital's DeFi Operations

Nonagon Capital, a venture fund based in the San Francisco Bay Area and part of the Hotto Link Group, has announced an ambitious plan to expand its DeFi (Decentralized Finance) operations to a total of one billion yen. This decision follows the success of its existing Ethena operations, which utilize stablecoins tied to the U.S. dollar.

Background of the Capital Increase

In the United States, regulatory frameworks surrounding cryptocurrencies and stablecoins are evolving rapidly, paving the way for existing financial institutions to enter the market and for the tokenization of financial products to gain traction. Nonagon Capital sees this as a significant opportunity, especially as the market transitions from a proof-of-concept stage to a more widespread application phase. By expanding its investment scale to one billion yen, the company aims to take advantage of this structural market change.

The ongoing involvement of institutional investors underscores the growing acceptance and implementation of DeFi products, thereby increasing the choices available for publicly listed companies that can operate under internal controls. Nonagon Capital remains committed to enhancing its operational prowess in the blockchain domain, thereby solidifying its growth strategy.

Operating Returns of 4% Annually

Since October 2025, Nonagon Capital has been executing DeFi operations using highly liquid stablecoins that exhibit minimal price volatility. The returns have maintained a stable annual level of approximately 4%, providing a significant source of revenue within Nonagon's Digital Asset Treasury (DAT) strategy. This operation is implemented under a robust risk management framework based on strict internal control rules to maintain a focus on safety while expanding operational scale.

The goal is not only to fortify the revenue base by increasing investment sizes but also to ensure the overall profitability of the business.

Allocation of the Capital Increase

The latest capital increase involves an additional fund injection from Hotto Link, which will focus on utilizing stablecoins like USDC—one of the top-performing stablecoins globally—to bolster the DeFi operations. Various methods associated with DeFi operations, such as staking, lending, and providing liquidity, will be utilized while minimizing risks associated with these strategies.

By diversifying its DeFi operations with this added capital, Nonagon Capital aims to improve revenue through enhanced yield while implementing effective risk hedging strategies. The insights gained from these operations will be applied to other existing businesses within Nonagon Capital, including its investment, community, and validator initiatives, thereby contributing to the wider adoption of cryptocurrency and blockchain technology.

About Nonagon Capital

Nonagon Capital is a venture fund headquartered in the San Francisco Bay Area that invests in blockchain projects. With a network of leading players globally, it focuses on bridging North American and Asian markets, particularly the Japanese market, and invests in seed-stage projects across various sectors, including infrastructure, DeFi, DAO, and entertainment. The mission is to cultivate projects that globally propagate Web3 technology, alongside fostering validator initiatives and enterprise community projects such as 'Nonagon Connect.' The company is poised to continue its proactive investment and operational activities within the blockchain landscape.

For more information, visit their official site: Nonagon Capital

About Hotto Link Inc.

Hotto Link, listed on the Tokyo Stock Exchange with the code 3680, is the core company of the Hotto Link Group, engaged in businesses across Japan and the United States. The company specializes in analyzing social big data, using insights from social media to support corporate marketing strategies and disaster response efforts. With a vision of creating a world where everyone can feel 'HOTTO' (comfortable), Hotto Link aims to leverage its data analysis capabilities within the Web3 domain.

Founded on June 26, 2000, Hotto Link is led by CEO Yasuhiko Hino and is located in Chiyoda, Tokyo. For more details, visit their website.