Public holding firm Mega Matrix (MPU) has made the Ethena stablecoin ecosystem the centerpiece of its digital asset technique, betting that the artificial greenback undertaking can seize market share from incumbents like Circle.
The firm’s push comes on the heels of the US GENIUS Act, a complete stablecoin invoice that establishes federal oversight of issuers, units capital and liquidity necessities and creates a framework for banks and fintechs to challenge dollar-pegged tokens underneath regulatory supervision.
However, Circle is presently the one publicly traded choice to capitalize on the big progress of stablecoins, Colin Butler, Mega Matrix’s govt vp and international head of markets, advised Cointelegraph.
Circle went public in June, with its shares up 87% since itemizing. The firm generated $1.68 billion in income and reserve earnings in fiscal 2024, with $155.7 million in web earnings, pushed largely by curiosity earnings from reserves backing its USDC (USDC) provide.
Butler mentioned Mega Matrix sees comparable potential in Ethena: “We suppose Ethena can do $150 million within the subsequent 6–12 months. That would indicate a 6x upside to Ethena.”
He credited Ethena’s progress to USDe, its artificial stablecoin that generates yield by means of a mixture of staking and hedging methods. Unlike USDC and USDt (USDT), USDe gives holders a return and, Butler argued, “serves as extra engaging collateral,” making it higher positioned to seize share in a fast-expanding market.
To give traders entry, Mega Matrix has positioned its inventory as the primary publicly traded digital asset treasury devoted to the Ethena ecosystem, concentrating reserves in Ethena’s governance token, ENA.
“This additionally opens the door for retail traders to get direct publicity to the stablecoin thesis for the primary time,” Butler mentioned. “Until now, the one actual method to play it has been Circle, or not directly by means of Coinbase.”
Before shifting into digital property, Mega Matrix operated primarily as an leisure and sport publishing enterprise. The firm started exploring blockchain in 2021 and formally repositioned itself as a digital asset treasury in 2025.
The firm is funding its digital asset technique with a $2 billion shelf registration, giving it flexibility to lift capital over time and steadily construct its holdings of Ethena’s ENA governance token.
Related: Crypto Biz: Japan’s quiet stablecoin coup
Ethena fee-switch mechanism
When submitting its shelf registration, Mega Matrix highlighted Ethena’s “fee-switch” mechanism as a possible worth driver. Once activated, the mechanism would redirect a portion of protocol revenues to ENA stakers, permitting tokenholders to share within the protocol’s earnings.
The proposal was launched by Wintermute Governance in November 2024, requesting that Ethena’s Risk Committee define parameters underneath which tokenholders would profit from income distribution. Factors included USDe circulating provide, common protocol revenues and adoption on centralized exchanges.
Later that month, the overall proposal was accredited, with Ethena Labs setting out a sequence of “success metrics” tied to circulating provide, cumulative revenues and trade adoption.
Although these benchmarks have been outlined, no activation date for the charge swap has been introduced, a spokesperson for the Ethena Foundation advised Cointelegraph.
Market watchers word that Ethena’s progress has already exceeded a number of the unique thresholds. Cumulative protocol revenues seem near qualifying ranges, and USDe’s market capitalization has surged previous $13 billion, making it the world’s third-largest stablecoin. Still, the protocol has but to specify when the mechanism will probably be applied.
Related: Banks ought to supply higher charges to counter stablecoins: Bitwise CIO
