Animoca Brands' Strategic Expansion into DeFi and Stablecoins: A High-Conviction Long-Term Investment in Web3's Future

In the evolving Web3 ecosystem, few players have demonstrated the ambition and agility of Animoca Brands. Over the past two years, the company has transitioned from a gaming-centric Web3 pioneer to a diversified blockchain infrastructure leader, with a strategic pivot toward DeFi and stablecoins. As the firm forges partnerships with traditional financial institutions, develops tokenized real-world asset (RWA) platforms, and prepares for a Nasdaq listing, its trajectory raises compelling questions about its long-term investment potential. This analysis examines Animoca's strategic moves, financial resilience, and market positioning to assess whether it warrants a high-conviction bet in the next phase of Web3's growth.

Strategic Partnerships and Product Launches: Bridging Web3 and Traditional Finance

Animoca's recent initiatives underscore its commitment to bridging decentralized finance with traditional systems. In 2025, the company co-founded Anchorpoint Financial Limited, a joint venture with Standard Chartered Bank (Hong Kong) and HKT, to pursue a stablecoin issuer license from the Hong Kong Monetary Authority (HKMA) according to Animoca's announcement. This partnership is not merely symbolic; it reflects a calculated effort to align with regulatory frameworks while leveraging Hong Kong's emerging role as a global Web3 hub. Evan Auyang, Animoca's group president, emphasized that stablecoins are pivotal to reinforcing Hong Kong's status as an international financial center-a vision that aligns with the firm's broader mission to integrate blockchain into mainstream finance according to the company's leadership.

Simultaneously, Animoca has expanded its RWA ambitions through NUVA, a platform co-developed with ProvLabs. NUVA aims to tokenize real-world assets, enabling fractional ownership and liquidity in traditionally illiquid markets such as real estate and art according to company statements. This move positions Animoca at the intersection of DeFi and asset tokenization, a sector projected to grow significantly as institutional investors seek blockchain-based alternatives. By addressing both regulatory compliance and scalability, Animoca is building a foundation for sustainable growth in a fragmented market.

Financial Resilience and Capital Allocation: A Strong Balance Sheet

Animoca's financial performance in 2024 provides further justification for optimism. The company reported US$314 million in bookings for the year, a 14% year-over-year increase, driven by its Digital Asset Advisory (DAA) business. Token advisory and market-making revenues surged to US$68 million and US$97 million, respectively, while Web3 operating businesses contributed US$110 million in revenue from blockchain-based sales and in-app purchases.

Equally compelling is Animoca's liquidity position. As of December 2024, the firm held US$293 million in cash and stablecoins and US$538 million in digital assets, including major tokens like ETH, BTC, and APE. Notably, its off-balance sheet token reserves-valued at US$2.9 billion-include tokens such as SAND, EDU, and MOCA, which are critical for incentivizing user engagement on its platforms. These reserves not only provide operational flexibility but also serve as a buffer against market volatility, a key concern in the cyclical Web3 sector.

Diversification Beyond Gaming: A Strategic Imperative

While Animoca's gaming roots remain a cornerstone of its identity, its expansion into AI, DeFi, and stablecoins marks a strategic shift toward long-term resilience. As noted in a report by Finance Feeds, the company aims to reduce reliance on the cyclical gaming sector by diversifying into high-growth verticals such as tokenized assets and decentralized infrastructure according to the report. This pivot is not without risks-regulatory scrutiny in DeFi and the technical complexities of AI-integrated blockchain applications pose challenges-but it also opens avenues for innovation.

A key milestone in this diversification is Animoca's planned Nasdaq listing via a reverse merger with Currenc Group in 2026. Such a move would enhance its access to global capital and institutional investors, a critical step for scaling its RWA and DeFi initiatives. Market observers suggest that this transition could redefine Animoca's role in the Web3 ecosystem, transforming it from a niche player into a systemic infrastructure provider according to industry analysis.

Risks and Challenges: Navigating a Complex Landscape

Despite its strengths, Animoca's strategy is not without caveats. The DeFi and stablecoin sectors remain highly regulated, particularly in jurisdictions like the U.S. and EU, where compliance costs could escalate. Additionally, the technical risks associated with tokenizing real-world assets-such as valuation discrepancies and custodial challenges-require robust governance frameworks. As highlighted in a Markets.com analysis, the success of Animoca's pivot will depend on disciplined capital allocation and the ability to execute its vision without overextending resources according to the analysis.

Conclusion: A High-Conviction Bet in Web3's Infrastructure Play

Animoca Brands' strategic expansion into DeFi and stablecoins positions it as a key player in the next phase of Web3's evolution. By combining regulatory alignment, financial resilience, and a clear vision for tokenized assets, the company is addressing the pain points that have historically hindered blockchain adoption. While risks persist, its diversified revenue streams, substantial liquidity, and institutional-grade partnerships suggest a strong foundation for long-term growth. For investors seeking exposure to the infrastructure layer of the Web3 economy, Animoca represents a high-conviction opportunity-one that could yield outsized returns as the sector matures.