Anchorage Digital, a federally chartered crypto bank in the US, has announced the acquisition of Mountain Protocol, a stablecoin issuer best known for its yield-bearing stablecoin, USDM. The deal, pending regulatory approval, will see the integration of Mountain Protocol's team, technology, and licensing framework into Anchorage's offerings.
As part of the acquisition, Mountain Protocol will initiate an orderly wind-down of the USDM stablecoin, ceasing new issuance from May 12, 2025, and ending its yield rewards after 30 days. USDM holders can redeem or swap their tokens as the stablecoin prepares for discontinuation. Despite initial success with a peak $155 million market cap, USDM's value has dropped below $50 million, with about 10,820 holders affected by the changes.
Anchorage’s CEO Nathan McCauley cited the acquisition as strengthening the company’s position within the institutional stablecoin sector, while Mountain Protocol CEO Martin Carrica highlighted the combined expertise in stablecoin issuance and regulatory compliance. This move fits a growing pattern of consolidation between crypto and traditional finance firms as demand for regulated, yield-bearing stablecoins among institutions rises.
The acquisition is seen as advancing Anchorage’s suite of stablecoin services, boosting regulatory credibility, and expanding technological capabilities. However, the winding down of USDM may create short-term disruptions for its holders, signaling shifting priorities toward institutional solutions in the stablecoin space.