Hotlink Group's Nonagon Capital Completes $4 Million Investment in DeFi Operations

Hotlink Group, headquartered in Chiyoda, Tokyo, has recently announced the successful completion of a significant investment in decentralized finance (DeFi) by its affiliate Nonagon Capital, based in the San Francisco Bay Area, USA. This investment, amounting to approximately $4 million (or roughly 600 million yen), marks the transition from the initial launch phase to an operational phase in DeFi utilizing the stablecoin USDe.

The Rationale Behind Utilizing Stablecoins in DeFi Operations

In the world of cryptocurrency and digital assets, corporate investments are often fraught with volatility risks. The dramatic price fluctuations within the cryptocurrency market can directly impact stock values, necessitating a cautious financial strategy. Recently, publicly listed companies in both the U.S. and Japan have commenced utilizing crypto-assets as part of their Digital Asset Treasury (DAT) strategies, showcasing innovative financial practices.

However, it is crucial to recognize that market conditions and regulatory changes can lead to price corrections within the digital asset market, posing significant challenges for businesses trying to minimize the impact of these fluctuations. Additionally, companies are required to hold a substantial quantity of crypto-assets to effectively execute a DAT strategy, which may necessitate new fundraising efforts. This has become increasingly difficult, thus heightening the barriers for firms looking to incorporate crypto-assets into their financial portfolio.

Given these challenges, Hotlink has engaged in thorough research over the past several years to find a sustainable method of conducting DeFi operations. Ultimately, they identified stablecoins—structured to maintain parity with fiat currencies—as an optimal solution for providing stability to their corporate finances while venturing into DeFi.

Currently, Nonagon Capital is utilizing Ethena as an operational partner, but will continue to explore additional opportunities in the DeFi landscape. In the international market, DeFi projects like Morpho and Guntlet are gaining recognition for their potential to provide high returns while managing risks effectively. Furthermore, Nonagon is exploring opportunities to offer liquidity to early-stage DeFi projects seeking higher yields.

Future Outlook

The regulatory landscape surrounding stablecoins has evolved rapidly since the establishment of the second Trump administration. Improved regulations and advancements in technology are leading to reductions in transaction costs (gas fees) and transaction times, making it easier for companies to utilize stablecoins.

As major financial institutions and startups move toward issuing their own stablecoins, the scenarios for utilizing these financial instruments will likely expand. Given this evolving market environment, there are only a limited number of operators actively incorporating stablecoins into their DeFi ventures, making insights gained from Nonagon Capital’s operations notably valuable. The knowledge obtained from these experiences will be leveraged across various existing business domains, such as investment ventures, community initiatives, and validator operations, contributing to the ongoing integration of Web3 technologies into society.

Related Information

- Hotlink Group's Nonagon Capital Begins DeFi Operations Using Stablecoins (Published on October 8, 2025)
- Shareholder Information: Web3 Business Strategy

About Nonagon Capital

Nonagon Capital is a venture fund based in the San Francisco Bay Area, focused on investing in blockchain projects. With a network of leading players worldwide, Nonagon Capital bridges North American and Asian markets, particularly the Japanese market. The fund invests primarily in seed-stage projects related to infrastructure, DeFi, decentralized autonomous organizations (DAOs), and entertainment. Their mission is to foster globally impactful Web3 projects while promoting validator and enterprise-focused community initiatives to support ongoing investment activities within the blockchain realm.

About Hotlink Inc.

Founded on June 26, 2000, Hotlink Inc. serves as the core business entity within the Hotlink Group, which operates in both Japan and the United States. Their primary focus lies in analyzing social big data—captured from users' voices on social media—and offering support for businesses in their marketing initiatives, reporting, and disaster response. In the Web3 sector, Hotlink aims to leverage data analytics capabilities as a foundational element in creating a world where individuals can experience comfort and ease.

Company Code: 3680 (Tokyo Stock Exchange Growth Market)

Official Website: Hotlink Inc.