Anchorage Digital, the one federally chartered digital asset financial institution in the US, is increasing its stablecoin capabilities via the acquisition of Mountain Protocol, a regulated stablecoin issuer.
The deal, introduced on Could 12, is topic to regulatory approval and commonplace closing circumstances.
Whereas monetary phrases of the acquisition weren’t disclosed, Anchorage confirmed it can combine Mountain Protocol’s staff, know-how, and licensing framework into its broader infrastructure.
The transfer underscores a rising pattern of mergers between crypto-native and conventional monetary corporations.
Stablecoins are Spine of Crypto Economic system
Anchorage CEO Nathan McCauley described stablecoins as “the spine of the crypto economic system” and predicted that “each enterprise” will finally depend on them for day-to-day operations.
Mountain Protocol CEO Martin Carrica stated the partnership would enable each firms to fulfill rising international demand for stablecoin providers, combining Anchorage’s institutional crypto platform with Mountain’s stablecoin experience.
Mountain Protocol is regulated by the Bermuda Financial Authority and is greatest recognized for issuing Mountain USD (USDM), a yield-bearing Ethereum-based stablecoin.
Nevertheless, as a part of the acquisition, Mountain will start an orderly wind-down of USDM.
Minting of the stablecoin ceased on Could 12, and the agency says rewards will proceed for 30 extra days earlier than dropping to a 0% annual yield.
Anchorage Digital is thrilled to announce our acquisition of Mountain Protocol.
As stablecoins discover international product market match, we’re empowering establishments to fulfill surging demand and lead within the stablecoin area. pic.twitter.com/qzW7RO6lYj— Anchorage Digital
Consensus (@Anchorage) Could 12, 2025
Customers can proceed redeeming USDM via Mountain Protocol’s platform, whereas different holders are inspired to transform their tokens on secondary markets.
USDM had reached a peak market cap of $155 million in March 2024 however has since dropped under $50 million, in keeping with RWA.xyz, which estimates there are round 10,820 USDM holders.
This acquisition follows Anchorage’s launch of a stablecoin rewards program in 2023, which supplied yield for establishments holding PayPal USD (PYUSD).
With Mountain Protocol now below its wing, Anchorage goals to additional solidify its place within the quickly evolving stablecoin area.
Tinian Island Set to Revisit Stablecoin Launch
Tinian, a small island within the U.S. territory of the Northern Mariana Islands, is one step nearer to launching its personal stablecoin after the territory’s Senate voted to override a earlier veto from Governor Arnold Palacios.
On Could 9, the Senate voted 7-1 in favor of shifting ahead with laws that will enable the Tinian authorities to difficulty licenses to web casinos and create a dollar-backed “Tinian Secure Token.”
The invoice will now head to the 20-member Home of Representatives, the place it can require a two-thirds majority to override the governor’s veto and be enacted into legislation.
Meanwhilel, there was an ongoing debate on stablecoin regulation.
Legislative efforts such because the GENIUS Act and the STABLE Act have stalled in Congress attributable to political tensions tied to former President Donald Trump’s increasing crypto initiatives.
The conflict has emerged regardless of rising bipartisan curiosity in advancing crypto regulation.
The stablecoin invoice, spearheaded by Sen. Invoice Hagerty (R-Tenn.), was handed out of the Senate Banking Committee in March with backing from 5 Democrats.
Nevertheless, momentum seems to have stalled amid deepening political divisions.
Democratic considerations reportedly intensified throughout a personal caucus assembly final week, the place Senate Majority Chief Chuck Schumer urged colleagues to not decide to the invoice in its present type.
The publish Anchorage Digital Acquires Mountain Protocol to Develop Stablecoin Providers appeared first on Cryptonews.