Anchorage Digital, the first and only federally chartered crypto bank regulated by the OCC, has announced its acquisition of Mountain Protocol, the issuer of the regulated yield-bearing stablecoin USDM. This strategic move aims to integrate Mountain’s advanced stablecoin infrastructure and team into Anchorage’s operations, pending regulatory approval, to strengthen Anchorage’s position in the growing institutional stablecoin market.
Mountain Protocol, regulated by the Bermuda Monetary Authority, developed USDM as the first regulated yield-bearing stablecoin backed by short-term U.S. Treasuries. Since its launch in late 2023, USDM experienced rapid early growth, reflecting increasing institutional interest in compliant stablecoin products.
Nathan McCauley, CEO of Anchorage Digital, emphasized the critical role stablecoins are playing as the backbone of the digital economy. He highlighted that with recent regulatory advancements and expanding institutional use cases, Anchorage envisions a future where every business incorporates stablecoin strategies. The acquisition of Mountain Protocol marks a significant step toward enhancing institutional adoption by advancing safety, security, and regulatory compliance in the digital asset ecosystem.
The stablecoin sector is rapidly evolving, driven by rising demand from payment firms, fintech companies, and banks, alongside anticipated U.S. legislation aimed at providing clearer regulatory frameworks. Market analysts project the stablecoin market could grow from its current $230 billion valuation to trillions of dollars by the end of the decade.
This acquisition also reflects broader industry consolidation trends as major players position themselves to capture market share in the expanding institutional stablecoin landscape. Anchorage’s move follows other notable deals, such as Circle’s acquisition of tokenization startup Hashnote earlier this year.
In summary, Anchorage Digital’s purchase of Mountain Protocol signals a pivotal moment in the maturation of institutional stablecoins, reinforcing Anchorage’s commitment to leading innovation and compliance in this burgeoning sector throughout 2025 and beyond.
