Hotto Link expands Web3 strategy, targets $4m in DeFi stablecoin operations

Hotto Link announced an additional investment of $4,000 thousand in its consolidated subsidiary, Nonagon Capital. This investment, sourced from Hotto Link, aims to strengthen Nonagon Capital's financial foundation, which plays a core role in Hotto Link’s Web3 business. This additional capital will be used by Nonagon Capital to deposit funds into DeFi protocols, performing stablecoin operations.

Following this investment, it was determined that Nonagon Capital, with capital exceeding 10% of Hotto Link's capital as of May 31, 2024, retroactively qualified as a specified subsidiary. Hotto Link will commence DeFi operations with USDe, an emerging stablecoin, targeting a total of $4 million. This initiative is a core component of Hotto Link’s financial strategy, aiming for stable and liquid returns within the Web3 market.

The company anticipates an annual yield of 5-10% from these DeFi operations, contributing to its new business revenue. These activities are expected to enhance capital efficiency and diversify revenue streams, aligning with Hotto Link's mid-to-long-term growth strategies in the Web3 sector.