- Mega Matrix aims for 6x growth in the stablecoin market by backing Ethena’s ecosystem.
- Ethena’s USDe stablecoin, with $13B market cap, offers yield and challenges Circle’s USDC.
- GENIUS Act sets the stage for stronger regulation and institutional growth in stablecoins.
Mega Matrix has placed the Ethena stablecoin ecosystem at the center of its digital asset strategy. The holding company filed a $2 billion shelf registration to fund ENA accumulation and position its stock as a proxy for Ethena’s growth. The move follows the passage of the U.S. GENIUS Act, a comprehensive bill introducing federal oversight for stablecoin issuers.
According to the company, shelf registration provides flexibility in raising capital over time. Mega Matrix intends to steadily build a treasury anchored in Ethena’s ENA governance token and related assets. Industry observers note this marks the first public vehicle dedicated to the Ethena ecosystem.
Strategy and Market Context
Colin Butler, Mega Matrix’s executive vice president, revealed that the firm expects Ethena to generate $150 million in revenue within the next 6 to 12 months and pointed out taht it could represent a six-fold growth opportunity for the project. Butler credited Ethena’s appeal to its USDe synthetic stablecoin, which combines staking and hedging strategies to earn yield.
The circulating supply of USDe has already exceeded $13 billion, which makes it the third-largest stablecoin globally. In addition, Binance recently introduced new spot trading pairs for USDe, which is likely to increase liquidity and strengthen its market presence. These aspects reinforce the Mega Matrix’s argument that Ethena should be prioritized among other stablecoin rivals.
Regulatory Backdrop and Circle Benchmark
The GENIUS Act establishes a regulatory structure for stablecoin issuers, requiring capital, liquidity, and risk management. The act permits banks and licensed nonbanks to issue dollar-pegged tokens under federal supervision. The legislation seeks to integrate stablecoins into the financial system, safeguard investors, and uphold market stability.
Meanwhile, Circle sets a benchmark for stablecoin issuers to accomplish under regulatory oversight. The USDC issuer went public in June, reporting revenue of $1.68 billion for fiscal 2024 and net income of $155.7 million. Reserve yields mainly drove its earnings. In addition, Circle’s shares have risen significantly since its listing, highlighting stablecoins’ power in generating high financial returns.
Fee-Switch Mechanism and Treasury Approach
Mega Matrix has also noted that Ethena suggested a “fee-switch” mechanism as a possible value driver for ENA holders. The scheme would enable a certain amount of protocol revenues to be allocated to token stakers. The Risk Committee at Ethana has established standards concerning the circulating supply, protocol revenues, and adoption of the exchange. However, no official date has been announced.
Butler noted that Mega Matrix’s strategy gives retail investors a direct way to gain exposure to the stablecoin sector. Previously, most exposure was limited to Circle or indirectly through platforms like Coinbase. By concentrating its reserves in ENA and related ecosystem assets, Mega Matrix aims to create a clear treasury model aligned with Ethena’s growth.
Related: Ethena Charts Bullish Path as Analysts Eye $1.00 Breakout
Hyperliquid’s USDH Vote and Near-Term Outlook
Arthur Hayes, co-founder of Maelstrom, recently purchased about $1 million worth of ENA tokens. His move came ahead of Hyperliquid’s validator vote to determine the issuer of the USDH stablecoin ticker. BlackRock backs Ethena’s bid for USDH and pledges 95% of revenue to Hyperliquid, while covering migration costs from USDC trading pairs.
However, on September 11, Ethena founder Guy Young announced that the company had withdrawn its bid to manage Hyperliquid’s USDH stablecoin. Young explained that feedback from validators and community members raised concerns over Ethena’s positioning within the ecosystem. The main points of contention were that Ethena is not a native Hyperliquid team, operates multiple products beyond USDH, and has broader ambitions beyond one exchange partnership. Rather than contest these arguments, Ethena decided to step aside.
The withdrawal clears the path for Native Markets, which has gained momentum in the contest. Appreciating the Native Markets team, Young addressed critics who questioned their credibility and pointed out that the success is reflected in Hyperliquid’s community-driven ethos.
