Anchorage Digital to Acquire Mountain Protocol, Pending Regulatory Approval, Adding USDM Yield-Bearing Stablecoin

Anchorage Digital, a federally chartered crypto bank and custodian, has signed a definitive agreement to acquire Mountain Protocol, the issuer of the yield-bearing USDM stablecoin. The acquisition is pending regulatory approval.

Anchorage plans to integrate Mountain Protocol's technology, team, and licensing structure into its operations. Mountain Protocol, regulated by the Bermuda Monetary Authority, issues USDM, a stablecoin backed by short-term U.S. Treasuries. USDM was launched in late 2023 and reached a supply peak of $150 million before declining to $50 million.

Anchorage Digital CEO Nathan McCauley stated that stablecoins are becoming the backbone of the digital economy, and the acquisition aims to support institutional stablecoin adoption and enhance safety, security, and regulatory compliance in the digital asset sector.

The USDM platform allows users to gather digital asset wallet addresses and wire details to fund their accounts. The stablecoin market is currently valued at around $230 billion and is experiencing rapid growth and increased competition.

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