USDM stablecoin, which generates interest, is being finalized
Mountain Protocol, a stablecoin issuer known for its USDM token backed by government bonds, has been acquired by Anchorage Digital. This development marks a significant step towards accelerating institutional adoption of stablecoins.
Registered in Bermuda to circumvent regulatory issues, Mountain Protocol has been offering 5% interest on USDM to its holders since late summer 2023. The rewards were paid out continuously through a smart contract. However, the acquisition aims to discontinue the USDM stablecoin, which brought interest to private individuals and could democratize parts of the financial sector.
From May 12th, the minting of new USDM stablecoins will be discontinued. After 30 days, the interest rate on USDM will be reduced to 0 percent, and the interest will still be paid out for the next 30 days after May 12th. Following this period, the orderly wind-down of USDM stablecoins will commence.
Primary customers can exchange their USDM for dollars through the Mountain Protocol platform. Anchorage Digital, on the other hand, offers a Stablecoin Reward program, but it is only available to financial institutions, governments, and companies.
Anchorage Digital's CEO, Nathan McCauley, believes that stablecoins are on the cusp of becoming the backbone of the digital economy. The acquisition of Mountain Protocol's team, technology, and intellectual property is a strategic move towards this goal.
In addition, Anchorage Digital is part of the Global Dollar Network, a group of crypto companies issuing the stablecoin USDG. This network could further strengthen Anchorage Digital's position in the stablecoin market.
It is important to note that the search results do not contain information about the name of the person who took over Mountain Protocol or when the USDM stablecoin will be dissolved. As this story develops, more information may become available.
In conclusion, the acquisition of Mountain Protocol by Anchorage Digital signifies a significant shift in the stablecoin market. The discontinuation of the USDM stablecoin, which has been a popular choice among private individuals, may have far-reaching implications for the democratization of finance. Stay tuned for more updates on this developing story.
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