Chiara Bianchi
Anchorage Digital, the first federally chartered crypto bank in the U.S., is making a bold move into the stablecoin market with the acquisition of Mountain Protocol, a company behind the yield-generating stablecoin USDM, according to a Monday announcement.
The acquisition comes as Mountain Protocol prepares to sunset USDM, its Ethereum-based stablecoin backed by short-term U.S. Treasuries. Though the terms of the deal remain undisclosed, Anchorage confirmed that it will integrate Mountainโs entire team, core technology, and regulatory framework into its operations.
Anchorage CEO Nathan McCauley described the acquisition as a milestone in advancing secure, compliant, and institutional-grade stablecoin services.
โThis acquisition represents a major leap forward in accelerating stablecoin adoption at the institutional level,โ said McCauley. โWeโre laying the groundwork for a new era of secure and compliant stablecoin innovation.โ
While stablecoin regulatory legislation remains in limbo following a stalled vote in Congress last week, upcoming bills suggest a greater role for regulated banking entities in managing fiat-backed digital currencies โ a shift that could benefit Anchorageโs chartered status.
“Every Business Will Be a Stablecoin Business”
McCauley also emphasized the long-term trajectory for the digital asset space:
โStablecoins are quickly becoming the foundation of the modern digital economy. With ongoing regulatory momentum and expanding enterprise use cases, we firmly believe that in the future, every business will operate with stablecoins.โ
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The Rise and Exit of USDM
Launched in 2023, Mountain Protocolโs USDM was a yield-bearing stablecoin built on Ethereum and pegged to the U.S. dollar. It utilized a โrebasingโ mechanism to offer holders around 5% APY via daily rewards, with assets fully backed by U.S. Treasuries in bankruptcy-remote accounts.
Despite reaching a peak supply of $150 million, USDMโs circulation has declined to around $50 million, per data from rwa.xyz. Mountain recently confirmed via X that the token will undergo an orderly shutdown as the acquisition closes.
Anchorage’s Expansion Reflects Broader Industry Trends
Anchorageโs entrance into the stablecoin sector mirrors a growing wave of institutional adoption, fueled by regulatory clarity and innovation in digital asset design. The deal also comes at a time when fiat-backed stablecoins are emerging as critical infrastructure for on-chain finance and global payments.
With this acquisition, Anchorage Digital is positioning itself to be a dominant force in compliant stablecoin services, potentially reshaping how institutions interact with digital dollars.
