Hotlink’s $4M DeFi Play: Why the Japanese Firm Chose USDe Over USDC

Hotlink Group, a publicly traded Japanese company, announced that it has begun actively deploying capital into decentralized finance (DeFi) using the synthetic stablecoin USDe.

The firm stated that its subsidiary, Nonagon Capital, executed an initial investment toward a total target of $4 million in DeFi operations. While USDC remains the common institutional choice due to its regulatory standing, Hotlink chose the high-yield USDe.

The USDe Rationale: Yield Trumps Simple Custody

Hotlink’s decision to use USDe, issued by Ethena, over established fiat-backed stablecoins like USDC or USDT, reveals a strong commitment to maximizing returns in its treasury management.

Historically, firms opting for stability chose USDC (Circle) due to its fiat-backed structure and high reserves transparency, which satisfies strict risk management requirements. USDT (Tether), despite its market dominance, carries long-standing regulatory scrutiny that makes it generally unsuitable for public corporate balance sheets.

USDe employs an entirely different, synthetic approach. It maintains its $1 peg using a strategy known as delta-neutral hedging, which combines long positions in assets like Ether with equivalent short positions in derivatives. This structure allows USDe to generate a high yield from staking rewards and derivatives funding rates. Fiat-backed stablecoins like USDC cannot match these returns.

The USDe operation is an active management endeavor that utilizes complex derivative and staking mechanics. Hotlink’s use of Nonagon Capital, a specialized Web3 venture firm, for execution is a necessity. It provides the expertise to manage the associated complexities while strategically capitalizing on high-yield opportunities.

Corporate Strategy: From Bitcoin Speculation to Stablecoin Utility

Although some Japanese companies adopted a “Bitcoin Treasury Strategy,” adding BTC to their balance sheets, focusing on stablecoins rapidly became the core of Japanese corporate digital finance strategy in 2025.

While Bitcoin is often viewed as a speculative asset or “digital gold,” stablecoins are treated as “programmable money.” Their utility centers on operational efficiency. Stablecoins offer faster and cheaper fund transfer solutions for international remittances and cross-border e-commerce than legacy banking. Furthermore, they allow for the pursuit of higher yields in DeFi—capital efficiency that low-interest yen deposits cannot offer.

A Deloitte survey of North American CFOs conducted in Q2 2025 supports this shift. It found that 39% of finance chiefs cited “improved facilitation of cross-border transactions” as a top appeal of stablecoins.

Paxos Head of Strategy @whessert and @Deloitte’s Richard Rosenthal joined the @AmerBanker podcast to discuss the benefits of #stablecoin adoption, use cases and where they believe the marked is headed.

Learn more: https://t.co/XcFGf0pL1M pic.twitter.com/kVRIrvoxnB

— Paxos (@Paxos) November 16, 2023

Hotlink’s move represents a cutting-edge attempt to address the fundamental treasury goals of asset value preservation and capital optimization by leveraging the power of stablecoins and DeFi.

JPYC’s Outlook: Potential for Domestic Adoption

The potential for Hotlink or other Japanese firms to adopt JPYC alongside USDe is significant.

Japan’s revised Payment Services Act, enforced in June 2023, prepared the regulatory landscape for stablecoins. This September, reports suggested that JPYC Inc., the JPYC issuer, would become the first domestic Fund Transfer Service Provider, supervised and approved by the government, to issue the asset as an electronic payment instrument this fall.

The most compelling factor is the elimination of foreign exchange risk. Since JPYC is yen-denominated, its use in yen-based operations removes the currency volatility inherent in using dollar-pegged stablecoins—a key consideration for Japanese corporate finance.

JPYC’s regulatory standing is robust. It offers Japanese corporations more regulatory assurance and trust than overseas USDC or USDT. While USDe targets a global, dollar-based DeFi yield, JPYC can become the foundational layer for domestic payment innovation and yen-based DeFi within a regulated framework. This dual-coin strategy—high yield abroad, regulated utility at home—will likely accelerate across Japan’s corporate sector through 2026.

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