#Japan #Tokyo #stablecoin #Nonagon Capital #Hotlink Group

Nonagon Capital Ventures into DeFi with Stablecoin Strategy

Hotlink Group, headquartered in Chiyoda, Tokyo, has made significant strides in the blockchain arena through its subsidiary, Nonagon Capital. This venture, with its base in the San Francisco Bay Area, has officially launched its DeFi operations, focusing on providing liquidity to innovative projects in the decentralized finance domain.

As part of its inaugural move, Nonagon Capital will deploy a stablecoin known as USDe, linked to the US dollar, utilizing the Ethena protocol. This strategic choice aims to reduce the volatility often associated with traditional cryptocurrencies by targeting highly liquid and stable assets.

In contrast to conventional crypto assets, which can experience wild price swings, the initial asset allocation for this strategy is specifically tailored to minimize risk. To ensure robust risk management, a multi-signature asset management system will safeguard resources, alongside a separation of trading, accounting, and fund movement flows. Periodic reviews will further reinforce a solid risk management framework.

The Fourth Pillar of Nonagon Capital

The recent move towards DeFi is viewed as the fourth pillar of Nonagon Capital's business strategy. The company has previously focused on three core areas: (1) Venture capital investments, (2) Community development initiatives, and (3) Support for validator operations. By integrating DeFi into its portfolio, Nonagon Capital is positioned to exploit yield-generating stablecoin opportunities within its Digital Asset Treasury (DAT) strategy.

This new initiative is grounded in the investment capital previously contributed by Hotlink. Since the establishment of Nonagon Capital, Hotlink has been an essential capital provider, and the DeFi operations will mark the beginning of leveraging this investment. Plans for scaling the operations and diversifying methods across multiple protocols are already in the works, including the formation of funds seeking investments from LPs (limited partners). The insights gained from these operations will play a critical role in enhancing investment decision-making processes, customer consulting services, and even the creation of new business initiatives.

About Nonagon Capital

Nonagon Capital is a venture fund based in the San Francisco Bay Area, focusing on investments in blockchain projects. With a global network connecting leading players, it adds value by serving as a bridge between North America and Asian markets, especially Japan. Their investment strategy revolves around seed-stage projects within Infrastructure, DeFi, DAOs, and entertainment. Their mission is to promote the widespread adoption of Web3 and they are also actively engaged in community initiatives for validators and enterprises, showcasing their commitment to the blockchain sector.

The entity is led by Kazushi Okamoto, the designated Executive Officer. More about their initiatives can be found on their official website and a detailed presentation can be accessed through this link.

About Hotlink

With a stock code of 3680 on the Tokyo Growth Market, Hotlink operates extensively across Japan and the US. They specialize in analyzing social big data, reflected through consumer voices such as social media posts, facilitating the effective use of this data in marketing, media reporting, and disaster management. In the Web3 realm, Hotlink aims to leverage its data analytics capabilities to build infrastructure that enables a world where people can comfortably engage with the digital realm.
Founded on June 26, 2000, and under the leadership of Group CEO Yasuhiko Hino, Hotlink is based in Chiyoda, Tokyo, and continues to innovate in SNS marketing support. More information can be found on their official site.