"Interview with Executives of Cryptocurrency Concept Stocks" Mega Matrix Inc. Chief Strategy Officer Jia Songtao: Why is there a firm commitment to enter the stablecoin sector?

In this interview, we spoke with Jia Songtao, the Chief Strategy Officer of Mega Matrix Inc., focusing on why the company chose to use stablecoins as a starting point to systematically enter the on-chain finance and digital asset allocation field. Article Author: Lesley Source: MetaEra Core viewpoint • 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 outbreaks 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 "compliance configuration + public returns" is not only a reflection of corporate responsibility but also a long-term commitment to the capital market 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 a series of interviews with executives from high-end cryptocurrency concept stocks titled "High-End Dialogues." We will converse with those business leaders who dare to take the lead in the wave of digital transformation, delving into their strategic layouts, business innovations, and financial innovations from the decision-makers' first perspective, providing forward-looking insights for industry participants.

The US-listed company Mega Matrix Inc. (NYSE: MPU) announced on July 25th the completion of a $16 million private placement financing for stablecoin and governance coin asset allocation, marking Mega Matrix Inc.'s official entry into the core area of on-chain finance. Behind this financing, support from multiple cryptocurrency funds and industry leaders has gathered, reflecting the market's high recognition of this traditional listed company's digital transformation path.

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 for the company's embrace of digital asset transformation. "This private financing is a key step in our strategic upgrade," said the company's 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 the stablecoin treasury strategy." In this interview, we spoke with Jia Songtao, the Chief Strategy Officer of Mega Matrix Inc., focusing on why the company chose to enter the on-chain finance and digital asset allocation field through stablecoins. Why does Mega Matrix Inc. firmly bet on the stablecoin asset allocation track? According to the announcement, Mega Matrix Inc. will mainly use the 16 million USD from this private placement financing for the construction of a stablecoin asset allocation system and the design of on-chain yield mechanisms, focusing on developing financial strategies related to stablecoins and governance tokens. This decision is not made on a whim. "We have researched this direction for a long time and visited many institutions and protocol parties before finally landing on it," said Jia Songtao. "The market response to this strategic transformation has been very positive. Investors not only recognize Mega Matrix's execution capability but also have great confidence in the future of the stablecoin industry." Stablecoins are standing on the eve of an explosion. Before explaining the specific strategic logic, Jia Songtao first elaborated on his judgment of the future of the stablecoin industry from a macro perspective. "I believe that the future world of digital assets will be built on three core infrastructures: public chains, stablecoins, and custody systems." In this framework, stablecoins will serve the composite functions of "asset anchoring + yield bearing + settlement vehicle," becoming the asset form closest to a "digital dollar." This judgment is based on an in-depth observation of the global digital asset development trends. From the accelerated promotion of central bank digital currencies (CBDCs) to traditional financial institutions' acceptance of digital assets, and to the Web 3.0 ecosystem's reliance on stablecoins as a fundamental liquidity source, stablecoins are moving from the periphery of the world to its center. "We see that an increasing number of sovereign nations, traditional financial institutions, and Web 3.0 projects are starting to use stablecoins as part of the underlying liquidity structure." Jia Songtao pointed out that from this perspective, stablecoins will not be a "transitional product," but an important part of the long-term order of future digital assets. More importantly, the gradual clarification of the regulatory environment is injecting unprecedented certainty into the stablecoin industry. The recently passed GENIUS Act (commonly known as the "Genius Act") has opened a clear path for stablecoin legislation, the MiCA regulatory framework in Europe has already come into effect, and places like Hong Kong and Singapore are also accelerating the construction of their own stablecoin regulatory rule systems.

According to industry statistics, the global stablecoin market value has surged from about 5 billion USD at the beginning of 2020 to currently over 260 billion USD, an increase of more than 50 times. With the improvement of the regulatory framework and the expansion of practical application scenarios, this number continues to rise rapidly. "The entire stablecoin industry is moving from the gray area towards institutionalization, which is the eve of an explosion." Jia Songtao made this judgment. The core logic of stablecoin asset allocation Based on the assessment of the development prospects of the stablecoin industry, 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 in-depth thinking about the digitalization trend of corporate financial structures.

"The allocation of stablecoin assets 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 introduced, "Companies like Strategy (NASDAQ: MSTR) adopt a Bitcoin treasury strategy, positioning Bitcoin as a long-term core asset allocation on the company's balance sheet." Strategy combats inflation risk through the value storage function of "digital gold," bringing significant book gains, which has also prompted other listed companies to follow suit. "Now we are also seeing more and more companies adopting Ethereum-based treasury strategies, with representative companies including SharpLink Gaming (NASDAQ: SBET) and others." Jia Songtao added that these companies are leveraging Ethereum's strong ecological interconnectivity and the composability of smart contracts to form a new liquidity infrastructure. But in his judgment, the next round of outbreaks will come from the stablecoin treasury strategy. 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 businesses with a relatively stable value base, reducing financial risk. • Large compliance space: Under 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 regulatory bodies. • High composability: Stablecoins have strong composability, allowing them to generate actual returns through various protocols. In the current interest rate environment, the on-chain returns provided by high-quality stablecoins will become a scarce asset. Jia Songtao particularly emphasized the advantage of "composability". The low interest rate environment in traditional financial markets makes high-quality yield assets extremely precious, and the yields generated by stablecoins through on-chain protocols precisely fill this gap. "Therefore, our allocation is not just the stablecoin itself, but the on-chain yield capability of the stablecoin." 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 returns. 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 strategic move to actively embrace digital financial infrastructure. How does Mega Matrix Inc. build a stablecoin asset layout? After determining the strategic direction, how to transform the concept into an executable business layout has become the key challenge faced by Mega Matrix Inc. The competition in the stablecoin sector ultimately boils down to the ability to build an ecological network. Cooperation layout: Deeply bind with mainstream stablecoin platforms When asked about the specific progress of the collaboration, Jia Songtao revealed some important information, although due to commercial confidentiality, he could not disclose the names of specific partners. "Currently, we are establishing in-depth partnerships with several top global stablecoin issuers," said Jia Songtao. "In terms of market capitalization, the leading stablecoins globally include USDT, USDC, USDe, DAI, etc., all of which have relatively high market liquidity." In the stablecoin market, the head effect is extremely obvious, with the top stablecoins occupying the vast majority of market share and having relatively complete technical infrastructure and the broadest ecological support. "We can confirm that we are in substantive cooperation talks with at least two of the top five stablecoin platforms globally," Jia Songtao further revealed. "The cooperation content covers multiple directions, including asset allocation and on-chain yield integration." The cooperation approach of Mega Matrix Inc. is not simply about asset purchases, but aims to build deeper business synergies. Asset allocation addresses the question of 'what to buy,' while on-chain yield integration involves the question of 'how to use.' 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 of a company transitioning to the stablecoin asset allocation track, Jia Songtao has in-depth observations and unique insights into the characteristics and development prospects of current mainstream stablecoins. "Based on the current market capitalization and industry consensus, the top 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 remains to be resolved As a pioneer in the stablecoin market, USDT, with its first-mover advantage, circulation volume, and cross-border payment scenarios, has long been at the top of global stablecoins, Jia Songtao introduced. However, what will truly determine its fate in the future is its compliance capability. "Against the backdrop of gradual implementation of global stablecoin legislation, USDT still needs to make further responses in terms of compliance and transparency." USDC: Compliance advantages are obvious, but earning capacity is limited. In contrast, USDC stands out in terms of compliance. Jia Songtao stated, "USDC is widely recognized by traditional financial institutions for its high compliance and audit transparency. The recently passed GENIUS Act in the United States can be said to be tailored 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 itself does not provide on-chain yields to holders." USDe: Innovative yield model helps it rise rapidly. In recent years, USDe has rapidly risen to prominence, and Jia Songtao has also paid special attention to it. "USDe is one of the fastest-growing stablecoins in recent years, and its underlying on-chain yield mechanism sUSDe has brought new asset allocation possibilities." As the market's demand for "yield-bearing stablecoins" has rapidly increased, the growth trajectory of USDe has shown a differentiated paradigm. DAI: A decentralized stablecoin representative 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 can be seen that Mega Matrix Inc. has a comprehensive consideration of factors in the selection of stablecoins: it not only needs to consider market position and liquidity, but also focus on compliance and profitability, as well as evaluate the possibility of ecological synergy. This multidimensional analytical framework provides clear guiding principles for the company's subsequent specific cooperation decisions. Transparent Disclosure: Setting a New Benchmark for Web 3.0 Finance As digital assets gradually become an important component 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. Mega Matrix Inc., as one of the earlier listed companies to enter this field, may provide an important reference sample for the entire industry in its exploration of financial disclosure and compliance mechanisms. When asked whether the income from stablecoin asset allocation would be included in the financial reporting disclosure 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 advancing the allocation of stablecoin assets while simultaneously building an auditable and disclosable financial record system." Jia Songtao emphasized that the construction of this system is progressing in parallel with business development to ensure compliance with the requirements for publicly listed companies from the very beginning. "We believe that 'compliant allocation + public returns' is not only a manifestation of corporate responsibility but also a long-term commitment to the capital market 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 solutions to the accounting issues of digital assets, the proactive move by Mega Matrix Inc. is particularly valuable. Summary: Traditional capital embraces the new paradigm of Web 3.0 At the moment when digital assets are moving towards institutionalization, Mega Matrix Inc.'s strategic transformation is not only a business restructuring but also an active attempt by a publicly listed company to redefine the boundaries of its role among capital, compliance, and technology. It did not choose the loudest concepts, but instead integrated Web 3.0 into the backbone of the corporate treasury, gradually establishing a controllable, auditable, and interest-bearing stablecoin asset system. For many enterprises in traditional industries, this may provide a realistic and replicable paradigm—not "All in Crypto," but "All in Strategy." The choice of Mega Matrix Inc. is not an isolated case, but may be a sign: more and more enterprises are moving towards an era of stable returns, 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 advantages. Stablecoins are not the endpoint of a certain industry trend, but rather the starting point for a comprehensive restructuring of the underlying financial architecture. Platforms that are the first to integrate system connectivity, revenue 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 by completing the preliminary deployment of strategic positioning and resource placement.