The only federally chartered crypto bank, Anchorage Digital, has signed a definitive agreement to acquire stablecoin issuer Mountain Protocol, the company behind the USDM stablecoin. The acquisition, once approved by regulatory authorities, will integrate the Mountain Protocol team, technology, and licensing framework into Anchorage Digital to expand its stablecoin capabilities.
According to a press release, Anchorage Digital has been at the forefront of advancing institutional participation in the stablecoin ecosystem allowing crypto-native organizations collect rewards on cash or treasury reserves through its stablecoin rewards programme and also its partnership in the Global Dollar Network (GDN)
Commenting on the acquisition, Nathan McCauley, CEO and Co-Founder of Anchorage Digital reiterated how stablecoins are becoming a backbone of the digital economy. “By acquiring Mountain Protocol, we are taking a significant step forward in supporting institutional stablecoin adoption and advancing a new era of safety, security, and regulatory compliance in the global digital asset ecosystem.”
The stablecoin market is getting increasingly competitive with payment firms, fintechs and even banks eyeing the asset class. These cryptocurrencies are anchored to an external asset, predominantly to the U.S dollar, and offer a cheaper, faster alternative to traditional payments.
Regulated by the Bermuda Monetary Authority, Mountain Protocol launched the USDM stablecoin in 2023 and backed them by short-term U.S. Treasuries. The company recently received a $8 million Series A funding from Multicoin Capital and will now be integrated into Anchorage Digital’s aim to accelerate institutional adoption of stablecoins.
Interestingly, a recent Citi report suggested that Stablecoins could have their
‘ChatGPT’ Moment in blockchain adoption and could also hit $3.7 Trillion by 2030.