Author: Lesley
Source: MetaEra

Core Insights

• Stablecoins will not be a "transitional product," but rather an important part of the long-term order of future digital assets, serving as a bridge between the traditional financial system and the blockchain world.
• The next wave of growth will come from stablecoin treasury strategies, primarily due to the characteristics of stablecoins such as "low volatility, high compliance space, and strong composability."
• We believe that "compliant allocation + public returns" not only reflects corporate responsibility but also represents a long-term commitment to the capital markets and investor confidence.
The Web 3.0 strategies and layouts of publicly listed companies have become a hot topic of increasing public interest. Against this backdrop, MetaEra officially launches the ++“High-End Dialogue” series of interviews with executives of crypto concept stocks++. We will engage with those business leaders who dare to lead in the wave of digital transformation, exploring their strategic layouts, business innovations, and financial innovations through the first-person perspective of decision-makers, providing forward-looking insights for industry participants.

Mega Matrix Inc. (NYSE: MPU), a publicly listed company in the U.S., announced on July 25 that it has completed a $16 million private financing round for stablecoin and governance token asset allocation, marking Mega Matrix Inc.'s formal entry into the core field of on-chain finance. This financing has garnered support from multiple cryptocurrency funds and industry leaders, reflecting the market's high recognition of this traditional listed company's digital transformation path.

Mega Matrix Inc.
From building the content ecosystem of the short drama streaming platform FlexTV to the current stablecoin asset allocation—Mega Matrix Inc.'s layout reflects a clear strategic plan in embracing digital asset transformation.
"This private financing is a key step in our strategic upgrade," said Chief Strategy Officer Jia Songtao in an interview with MetaEra. "Mega Matrix Inc. has transitioned from a holding company centered on content platforms to a systematic on-chain financial layout, particularly focusing on stablecoin treasury strategies."
In this interview, we spoke with Mega Matrix Inc.'s Chief Strategy Officer Jia Songtao, focusing on why the company chose stablecoins as an entry point to systematically enter the fields of on-chain finance and digital asset allocation.

Why is Mega Matrix Inc. firmly betting on stablecoin asset allocation?

According to the announcement, the $16 million from Mega Matrix Inc.'s private financing will primarily be used for the construction of a stablecoin asset allocation system and the design of on-chain yield mechanisms, with a focus on developing financial strategies related to stablecoins and governance tokens. This decision was not made lightly.
"We have researched this direction for a long time and visited numerous institutions and protocol parties before finalizing it," Jia Songtao admitted. "The market feedback on this strategic transformation has been very positive; investors not only recognize Mega Matrix's execution capability but also have great confidence in the prospects of the stablecoin industry."

Stablecoins are on the brink of explosion

Before explaining the specific strategic logic, Jia Songtao first elaborated on his judgment about the future of the stablecoin industry from a macro perspective.
"I believe the future digital asset world will be built on three core infrastructures: public chains, stablecoins, and custody systems." Within this framework, stablecoins will serve the composite functions of "asset anchoring + yield bearing + settlement vehicle," becoming the asset form closest to "digital dollars."
This judgment is based on a deep observation of global digital asset development trends. From the accelerated promotion of central bank digital currencies (CBDCs) to the acceptance of digital assets by traditional financial institutions, and the reliance of the Web 3.0 ecosystem on stablecoins as foundational liquidity, stablecoins are moving from the periphery to the center of the world.
"We see that more and more sovereign countries, traditional financial institutions, and Web 3.0 projects are beginning to incorporate stablecoins as part of their underlying liquidity structure," Jia Songtao pointed out. From this perspective, stablecoins will not be a "transitional product," but rather an important part of the long-term order of future digital assets.
Moreover, the gradually clarifying regulatory environment is injecting unprecedented certainty into the stablecoin industry. The recently passed GENIUS Act (commonly known as the "Genius Act") in the U.S. has opened a clear path for stablecoin legislation, the European MiCA regulatory framework has come into effect, and places like Hong Kong and Singapore are also accelerating the construction of their own stablecoin regulatory rule systems.

Changes in total market capitalization of stablecoins, source: DeFiLlama
According to industry statistics, the global market capitalization of stablecoins has surged from about $5 billion at the beginning of 2020 to over $260 billion now, an increase of more than 50 times. With the improvement of regulatory systems and the expansion of practical application scenarios, this number continues to rise rapidly.
"The entire stablecoin industry is moving from the gray area to institutionalization; this is the eve of an explosion," Jia Songtao concluded.

The core logic of stablecoin asset allocation

Based on the judgment of the stablecoin industry's development prospects, Mega Matrix Inc. further chose "stablecoin asset allocation" as the entry point for its digital transformation strategy. Jia Songtao pointed out that this choice stems from a deep reflection on the digitalization trend of corporate financial structures.

Stablecoins take the world stage
"Stablecoin asset allocation actually corresponds to a broader concept—treasury strategy." From the practices of market pioneers, different types of digital assets are forming their own treasury strategies. Jia Songtao explained, "Companies like Strategy (NASDAQ: MSTR) adopt a Bitcoin treasury strategy, using Bitcoin as a long-term core asset allocation on their balance sheets." Strategy uses the value storage function of "digital gold" to combat inflation risks, bringing significant paper gains and prompting other listed companies to follow suit.
"We are also seeing more and more companies adopting Ethereum-centric treasury strategies, with representative companies including SharpLink Gaming (NASDAQ: SBET)," Jia Songtao added. These companies leverage Ethereum's strong ecological interactivity and smart contract composability to form a new liquidity infrastructure.
However, in his judgment, the next wave of growth will come from stablecoin treasury strategies. The core logic of this judgment lies in the unique advantages of stablecoins:
• Low volatility: Compared to the high volatility of Bitcoin and Ethereum, stablecoins can provide companies with a relatively stable value foundation, reducing financial risks.
• High compliance space: In the current regulatory environment, stablecoins have a clearer compliance path compared to other crypto assets, making them more easily accepted by traditional financial institutions and regulators.
• Strong composability: Stablecoins have strong composability, capable of generating actual yields through various protocols. In the current interest rate environment, the on-chain yields carried by high-quality stablecoins will become scarce assets.
Jia Songtao particularly emphasized the advantage of "composability." The low-interest-rate environment in traditional financial markets makes high-quality yield assets extremely precious, while the yields generated by stablecoins through on-chain protocols precisely fill this gap. "So our allocation is not just stablecoins themselves, but the on-chain yield capabilities of stablecoins."
The core of Mega Matrix Inc.'s strategy is not simply to hold stablecoins but to build a stablecoin asset allocation system that can continuously generate yields.
From the perspective of industry development, stablecoin asset allocation is becoming an important bridge connecting traditional finance and the DeFi world. For traditional listed companies like Mega Matrix Inc., this strategy not only signifies an upgrade in asset allocation under controllable risks but also represents a proactive embrace of digital financial infrastructure.

How does Mega Matrix Inc. build its stablecoin asset layout?

Having determined the strategic direction, the key challenge facing Mega Matrix Inc. is how to translate its ideas into executable business layouts. The competition in the stablecoin sector ultimately comes down to the ability to build an ecological network.

Cooperative Layout: Deep Binding with Mainstream Stablecoin Platforms

When asked about specific cooperation progress, Jia Songtao revealed some important information, although he could not disclose specific partner names due to commercial confidentiality.
"Currently, we are establishing deep cooperative relationships with several of the world's leading stablecoin issuing institutions," Jia Songtao stated. "In terms of market capitalization, the leading stablecoins globally include USDT, USDC, USDe, DAI, etc., all of which have high market liquidity." In the stablecoin market, the head effect is very pronounced, with the top stablecoins occupying the vast majority of market share and possessing relatively complete technical infrastructure and the broadest ecological support.
"It can be confirmed that we are in substantive cooperation discussions with at least two of the top five stablecoin platforms globally," Jia Songtao further revealed. "The cooperation covers multiple areas, including asset allocation and on-chain yield integration." Mega Matrix Inc.'s cooperation approach is not simply about asset purchases but aims to build deeper business synergies. Asset allocation addresses the "what to buy" question, while on-chain yield integration involves the "how to use" question. This full-chain cooperation model is expected to bring the company more stable and sustainable sources of income.

Market Analysis: Competitive Landscape of Mainstream Stablecoins

As a decision-maker transitioning to the stablecoin asset allocation sector, Jia Songtao has deep observations and unique insights into the characteristics and development prospects of current mainstream stablecoins. "From the current market capitalization and industry consensus, the leading stablecoins globally mainly include USDT, USDC, DAI, and USDe, each with its own characteristics, representing different development paths and ecological tendencies."
USDT: Market Leader but Compliance Issues Remain
As a pioneer in the stablecoin market, USDT has long held the top position globally due to its first-mover advantage, circulation volume, and cross-border payment scenarios, Jia Songtao explained. However, its future fate will be determined by its compliance capabilities. "In the context of global stablecoin legislation gradually taking shape, USDT still needs to make further responses in terms of compliance transparency."
USDC: Clear Compliance Advantages but Limited Yield Capability
In contrast, USDC stands out in terms of compliance. Jia Songtao stated, "USDC is widely recognized by traditional financial institutions due to its high compliance and audit transparency. The recently passed GENIUS Act in the U.S. can be seen as tailor-made for USDC, making it a key interface between traditional finance and blockchain finance." However, beyond its compliance advantages, USDC also has significant functional limitations: "It should be noted that USDC does not provide on-chain yields to holders."
USDe: Innovative Yield Model Fuels Rapid Rise
Jia Songtao also paid special attention to the rapidly rising USDe in recent years. "USDe is one of the fastest-growing stablecoins in recent years, with its underlying on-chain yield mechanism sUSDe bringing new asset allocation possibilities." As market demand for "yield-bearing stablecoins" rises rapidly, USDe's growth path presents a differentiated paradigm.
DAI: Representative of Decentralized Stablecoins
As a representative of decentralized stablecoins, DAI occupies a special position in Jia Songtao's analysis. "DAI, as a representative of decentralized stablecoins, occupies a core position in the DeFi ecosystem and is suitable for forming strategic synergies with other decentralized protocols."
From the above analysis, it is evident that Mega Matrix Inc.'s considerations in choosing stablecoins are quite comprehensive: it must consider market position and liquidity, as well as compliance and yield capabilities, and assess the potential for ecological synergy. This multidimensional analysis framework provides clear guiding principles for the company's subsequent specific cooperation decisions.

Transparent Disclosure: Creating a New Benchmark for Web 3.0 Finance

As digital assets gradually become an important part of corporate financial allocation, how to achieve transparent disclosure within a compliance framework has become a core issue that traditional listed companies must face when entering the Web 3.0 field. As one of the earlier companies to enter this field, Mega Matrix Inc.'s exploration of financial disclosure and compliance mechanisms may provide important reference samples for the entire industry.
When asked whether stablecoin asset allocation yields would be included in the financial reporting system, Jia Songtao stated that this is a matter of great importance to the company and provided a clear and specific response.
"As a publicly listed company, Mega Matrix Inc. is building an auditable and disclosable financial record system while promoting stablecoin asset allocation," Jia Songtao emphasized. The construction of this system is being advanced in parallel with business development, ensuring compliance with the requirements of listed companies from the outset. "We believe that 'compliant allocation + public returns' not only reflects corporate responsibility but also represents a long-term commitment to the capital markets and investor confidence," Jia Songtao concluded.
The significance of this approach lies not only in meeting regulatory requirements but also in establishing an important precedent for the industry. Compared to many companies still exploring paths for handling digital asset accounting issues, Mega Matrix Inc.'s proactive approach is particularly valuable.

Conclusion: Traditional Capital Embraces the New Paradigm of Web 3.0

At the juncture where digital assets are moving toward institutionalization, Mega Matrix Inc.'s strategic transformation is not just a business restructuring but a proactive attempt by a listed company to redefine its role boundaries among capital, compliance, and technology. It has not chosen the loudest concepts but has integrated Web 3.0 into the backbone of corporate treasury, gradually establishing a controllable, auditable, and yield-generating stablecoin asset system.
For more companies in traditional industries, this may provide a realistic and replicable paradigm—not "All in Crypto," but "All in Strategy." Mega Matrix Inc.'s choice is not an isolated case but may signal a trend: more and more companies are moving toward an era of stable yields, transparent structures, and the systematic integration of on-chain financial tools.
In the new order of Web 3.0, only those who take the lead can seize the starting line of competitive advantage.
Stablecoins are not the endpoint of a certain industry trend but the starting point of a comprehensive reshaping of financial underlying structures. Those platforms that first complete the integration of institutional connections, yield models, and on-chain allocation capabilities will become the backbone of the future digital financial ecosystem. Mega Matrix is taking the lead in this deep transformation, having completed the preliminary deployment of strategic positioning and resource allocation.