Financial company Anchorage Digital has announced its agreement with Mountain Protocol, the issuer of the USDM stablecoin. This move aims to expand the company’s presence in the stablecoin sector and provide new offerings for institutional clients.
This is reported by Finway
As part of the agreement, Mountain Protocol will fully integrate into Anchorage Digital’s infrastructure, although the deal’s amount and details remain undisclosed. This expansion is intended to offer new products, although there are currently no plans to continue supporting the USDM stablecoin.
The Mountain Protocol team confirmed that one of the conditions of the agreement was the cessation of support for this asset. The reasons behind this decision, as well as the specific new products that Anchorage Digital plans to offer, have not yet been disclosed.
“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 making 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.
USDM, launched in 2023, is a cross-chain stablecoin primarily backed by short-term U.S. Treasury bonds and features a built-in yield mechanism. At its peak, the market capitalization of USDM reached $156 million, but it has since declined to below $50 million, which may be one of the reasons for the withdrawal of support for the asset.