Anchorage Acquires Mountain Protocol and Begins Shutdown of USDM Stablecoin

Highlights:

• Anchorage Digital has taken over Mountain Protocol and has ended the minting of USDM.
• Mountain Protocol will shift focus to support Anchorage in expanding stablecoin services across the global market.
• Tinian is moving forward with a local digital dollar while national stablecoin bills face delays in Congress.

Anchorage Digital has acquired Mountain Protocol in a deal that suggests an expanding interest in stablecoins. Anchorage Digital will take over the systems and infrastructure that Mountain Protocol operated on, according to the deal announced yesterday. The announcement did not detail the financial worth of the agreement.

Anchorage Digital is thrilled to announce our acquisition of Mountain Protocol.

As stablecoins find global product market fit, we’re empowering institutions to meet surging demand and lead in the stablecoin space. pic.twitter.com/qzW7RO6lYj

— Anchorage Digital ⚓ 🔜 Consensus (@Anchorage) May 12, 2025

Mountain Protocol has started winding down its stablecoin, Mountain USD (USDM), which offered daily rewards and was backed by short-term U.S. Treasury bills. Minting of USDM officially ended on May 12. Users will continue receiving rewards for 30 more days. After this period, the yield will fall to zero. Platform users can still redeem their tokens directly, while others can trade or convert them through exchanges.

Mountain Protocol clarified that this decision forms part of the transition and is not a result of poor performance. CEO Martin Carrica confirmed the company’s focus will now shift to supporting Anchorage’s efforts in expanding stablecoin use globally. The firm also warned users not to confuse USDM with a similarly named token on the Cardano network.

Anchorage Acquires Mountain Protocol to Expand Stablecoin Presence

Anchorage Digital, the only federally chartered digital asset bank in the United States, continues to expand its role in the digital currency space. CEO Nathan McCauley stated that stablecoins are becoming central to how the crypto economy operates. He also noted that more businesses are integrating them into their daily operations.

With this acquisition, Anchorage not only gains infrastructure but also brings in a team experienced in issuing yield-bearing stablecoins. This continues its previous moves, including a rewards program for institutional PayPal USD holders. The new addition further enhances Anchorage’s capacity to serve stablecoin-related services such as compliance, issuance, and customer management. These steps are necessary as the demand for alternative digital dollars increases.

According to CoinMarketCap, Mountain USD had a market cap of $152 million and is currently trading at $0.9998. The number of wallet addresses still holding the token stands at around 10,820. The acquisition adds this experience to Anchorage’s growing portfolio as it targets broader adoption.

Other Digital Dollar Efforts Gain Traction in U.S. Territories and Congress

Meanwhile, other regions are making moves to adopt stablecoin-based systems. The Tinian Senate recently voted to remove a veto on a bill to create the Marianas US Dollar, a stablecoin. By doing away with the governor’s veto, the territory can issue licenses to online gaming platforms and introduce the Tinian Stable Token, which is the local digital dollar. The proposal will still have to be approved by the House of Representatives.

At the same time, national stablecoin bills keep stalling in Congress. The GENIUS Act has stalled due to political differences in the Senate. Senate leaders had expressed concerns during recent meetings, asking members not to support the current drafts. Such setbacks reveal that it is still hard to develop clear legal routes for stablecoins despite the increasing interest.