Anchorage Digital Acquires Mountain Protocol, Expands Stablecoin Offerings
1min read Anchorage Digital, a leading digital asset bank, has expanded its stablecoin offerings through the acquisition of mountain protocol, a stablecoin issuer. This strategic move comes as Mountain Protocol begins the process of winding down its main stablecoin, Mountain USD (USDM). The acquisition, which is subject to customary closing conditions and regulatory approval, will integrate Mountain Protocol's team, technology, and licensing framework into Anchorage's existing offerings.
Anchorage CEO Nathan McCauley emphasized the growing significance of stablecoins in the crypto economy, predicting that every business will eventually incorporate stablecoins into their operations. Mountain Protocol CEO Martin Carrica echoed this sentiment, highlighting the combined strengths of Mountain Protocol's stablecoin experience and Anchorage's crypto infrastructure in meeting the global demand for stablecoin services.
Anchorage, as the only federally chartered digital asset bank in the US, and Mountain Protocol, regulated by the Bermuda Monetary Authority, bring complementary strengths to the table. This acquisition follows Anchorage's introduction of a stablecoin rewards program for institutions holding the paypal USD (PYUSD) stablecoin, demonstrating the company's ongoing commitment to expanding its stablecoin capabilities.
As part of the acquisition, Mountain Protocol will initiate an orderly wind-down process for USDM, which operates as a yield-bearing stablecoin. The stablecoin issuer ceased minting USDM on May 12, but USDM rewards will remain active for another 30 days before the reward rate is set to 0% APY. Customers can redeem their USDM through Mountain Protocol's platform, while other holders are encouraged to swap the stablecoin for other tokens on exchanges.
Ask Aime: "Anchorage Digital acquires Mountain Protocol, expanding stablecoin offerings. Why should I be interested?"
This acquisition reflects an accelerating trend of mergers and acquisitions between crypto and traditional financial firms. It underscores the strategic importance of stablecoins in the digital asset ecosystem and the need for regulated, reliable stablecoin issuers. By integrating Mountain Protocol's technology and expertise, Anchorage Digital aims to enhance its market position and provide high-quality stablecoin solutions to its clients.
