Stablecoin USDM undergoes a settlement process
Anchorage Digital, a leading digital asset platform, has announced the purchase of Mountain Protocol, a company that issued the stablecoin USDM. This development aims to accelerate institutional adoption of stablecoins and empower institutions to lead the market for stablecoins and digital assets.
The USDM stablecoin, which started rewarding holders with 5% interest in late summer 2023, will be undergoing an orderly wind-down process. Mountain Protocol will initiate this process, which includes recalling all outstanding USDM tokens and ceasing new minting from May 12. Interest will still be paid out for the next 30 days after May 12, before it is reduced to 0 percent.
Primary customers will be able to exchange USDM for dollars through the Mountain Protocol platform during the wind-down process. Other USDM holders are advised to trade them for other tokens on exchanges. The wind-down process does not affect Anchorage Digital's plans to integrate Mountain Protocol's team, technology, and intellectual property.
Anchorage Digital's plans to create the next generation of stablecoins also remain unaffected by the wind-down process. The purchase of Mountain Protocol is part of Anchorage Digital's strategy to strengthen its position in the stablecoin market and democratize parts of the financial system.
Mountain Protocol registered in Bermuda to circumvent regulatory issues. Only financial institutions, governments, and companies are accepted as customers in the Stablecoin Reward program. Despite this, USDM was the first liquid, freely available stablecoin that generated interest, and could have democratized parts of the financial system.
Anchorage Digital, which is already part of the Global Dollar Networks that includes Kraken, Robinhood, and Paxos, plans to integrate Mountain Protocol's team, technology, and intellectual property into its operations. This move is expected to further boost institutional adoption of stablecoins and digital assets.
The acquisition of Mountain Protocol is a significant step towards Anchorage Digital's goal of leading the market for stablecoins and digital assets. With its robust platform and strategic partnerships, Anchorage Digital is well-positioned to drive innovation and growth in the digital asset industry.
