Anchorage Digital has announced the acquisition of Mountain Protocol, the issuer of the USDM stablecoin. This deal, part of the company’s expansion strategy, will allow Anchorage Digital to increase its presence in the stablecoin market.
This is reported by Бізнес • Медіа
The agreement includes the full integration of Mountain Protocol’s infrastructure, team, and technologies into Anchorage Digital; however, financial details, including the purchase amount, have not been disclosed. According to representatives of Anchorage Digital, the company intends to develop new product offerings for its institutional clients.
Termination of USDM Support
An important condition of the agreement was also the termination of support for the USDM stablecoin. The reasons for this decision, as well as Anchorage Digital’s plans regarding new products, remain unknown for now. The Mountain Protocol team noted that this decision was made as part of the agreement.
“Stablecoins are becoming the foundation of the digital economy. Given the recent progress in regulation and new institutional use cases, our long-term vision is clear: every business will be a stablecoin business. By acquiring Mountain Protocol, we are taking a significant step forward in supporting institutional adoption of stablecoins and promoting a new era of security, reliability, and regulatory compliance in the global digital asset ecosystem,” said CEO Nathan McCauley.
History of the USDM Stablecoin
The USDM stablecoin was launched in 2023 and is a cross-chain stablecoin primarily backed by short-term U.S. Treasury bonds. Its feature is an embedded yield mechanism. At its peak, the market capitalization of USDM reached $156 million, but soon fell below $50 million, which may have been one of the reasons for the withdrawal of support for the asset.
By acquiring Mountain Protocol, Anchorage Digital will also gain a license from the Bermuda regulator. In addition, the company operates the first federal crypto bank in the U.S. and offers infrastructure provisioning services for digital assets.