Anchorage Digital Acquires Mountain Protocol to Bolster Stablecoin Capabilities

Anchorage Digital, the federally chartered crypto bank, announced yesterday it has signed a definitive agreement to acquire Mountain Protocol, the Bermuda-regulated company behind the USDM stablecoin. The acquisition, subject to regulatory approval, marks a significant expansion of Anchorage’s stablecoin strategy as institutional adoption accelerates.

“Stablecoins are becoming the backbone of the digital economy,” said Nathan McCauley, CEO of Anchorage Digital. “With recent regulatory progress and new institutional use cases, our long-term vision is clear: every business will be a stablecoin business.”

Strategic Expansion Amid Growing Stablecoin Market

Despite the US Senate recently rejecting the GENIUS Act, the overall sentiment in the US market is that 2025 will be the year for stablecoin growth with payment firms, fintechs, and banks increasingly looking to incorporate these digital assets into their operations.  On May 8th the bipartisan bill aimed at establishing comprehensive federal oversight for stablecoin issuers, failed to advance in the Senate by a vote of 48-49, falling short of the 60 votes needed. Nonetheless, Senate Banking Committee Chairman Tim Scott characterized the setback as merely a delay rather than a defeat, with negotiations continuing and a potential revote expected as soon as next week.

This regulatory uncertainty makes Anchorage’s acquisition of an already-regulated stablecoin issuer like Mountain Protocol particularly strategic, allowing the company to operate under Bermuda’s established regulatory framework while U.S. legislation develops and positions Anchorage to capitalize on institutional stablecoin adoption regardless of how U.S. regulations ultimately take shape.

This acquisition is the latest in a series of consolidations within the sector. Earlier this year, Circle, the company behind USDC, acquired tokenization startup Hashnote, which issues the yield-bearing USDY token.

Mountain Protocol: A Regulated Yield-Bearing Stablecoin

Mountain Protocol, founded in 2023 and backed by Multicoin Capital with an $8 million Series A round, offers a distinctive product in the stablecoin landscape. Its USDM stablecoin, which launched in September 2023, is regulated by the Bermuda Monetary Authority (BMA) and fully backed by short-term U.S. Treasuries.

USDM distinguishes itself as a yield-bearing stablecoin that offers users daily rewards through a rebasing mechanism, currently at approximately 5% APY. The stablecoin operates as an ERC-20 token on Ethereum and has expanded to other blockchains, making it accessible across multiple networks.

“The rebasing mechanism is similar to Lido Finance’s stETH and familiar to most crypto users,” explained Martín Carrica, co-founder of Mountain Protocol, in a previous statement. “This provides non-U.S. users access to U.S. Treasury yields in a permissionless format.”

USDM’s supply reached a peak of about $150 million following its launch but has since stabilized around $50 million. Under S&P Global Ratings’ assessment, USDM received a rating of 3 (adequate) for its ability to maintain a stable price against the U.S. dollar.

Anchorage’s Growing Stablecoin Presence

Anchorage Digital has been steadily building its presence in the stablecoin ecosystem. The company was a launch partner in the Global Dollar Network (GDN), an alliance formed in November 2024 that includes Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. This initiative introduced USDG, a regulated stablecoin issued by Paxos in Singapore under the oversight of the Monetary Authority of Singapore.

Through the GDN, Anchorage offers institutions capabilities such as stablecoin rewards, trading, and secure custody services. The acquisition of Mountain Protocol significantly expands these offerings.

“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,” McCauley added.

Industry Impact and Future Outlook

Industry experts believe the acquisition will strengthen Anchorage’s position as institutional investors increasingly look for regulated entry points into digital assets. The combined entity will integrate Mountain Protocol’s team, technology, and licensing framework into Anchorage Digital’s existing infrastructure. Anchorage Digital, founded in 2017, has grown into a comprehensive crypto platform for institutions with a valuation exceeding $3 billion. The company holds a federal banking charter in the U.S. and maintains offices in San Francisco, New York, Porto (Portugal), Singapore, and Sioux Falls.

The transaction is expected to close in the third quarter of 2025, pending regulatory approvals.