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Anchorage Digital, a federally chartered digital asset bank in the US, has acquired Mountain Protocol, a Bermuda Monetary Authority-regulated stablecoin issuer. This acquisition integrates Mountain Protocol’s team, technology, and licensing framework into Anchorage’s existing stablecoin offerings. While financial details remain undisclosed, the deal underscores the increasing mergers and acquisitions between cryptocurrency and traditional finance (TradFi) firms.
Anchorage CEO Nathan McCauley highlighted the growing importance of stablecoins within the crypto economy, predicting widespread business adoption. Mountain Protocol CEO Martin Carrica emphasized the synergistic combination of their stablecoin expertise and Anchorage’s infrastructure to meet escalating global demand for stablecoin services.
A key element of the acquisition involves the orderly wind-down of Mountain Protocol’s yield-bearing stablecoin, Mountain USD (USDM). Minting of USDM ceased on May 12th, 2024, with USDM rewards remaining active for 30 days before being set to 0% APY. USDM holders can redeem their tokens through Mountain Protocol’s platform, or exchange them for other cryptocurrencies on various exchanges. It’s important to note that Mountain Protocol’s USDM, an Ethereum-based stablecoin, is distinct from Mehen Finance’s Cardano-based USDM.
Mountain Protocol’s USDM experienced notable success after its late 2023 launch, reaching a market capitalization of $155 million by March 2024 before declining to below $50 million. Approximately 10,820 holders are currently estimated. The acquisition reflects a broader trend: the cryptocurrency industry, initially envisioned as a disruption to traditional banking, is increasingly integrating with and acquiring established financial institutions, particularly within the stablecoin sector. This demonstrates the evolving relationship between crypto and TradFi, with stablecoins playing a pivotal role in this convergence.
