Mountain Protocol Launches USDM Stablecoin with 5% Annual Interest Rate and BMA License

By 0xGorki 09/12/23 3:23 AM

Mountain Protocol has officially launched its stablecoin, USDM, which is backed by short-term US Treasury bonds. This groundbreaking project has gained the backing of prominent investors, including CastleIsland and Coinbase, and is set to disrupt the stablecoin market.

1/ Today we publicly launch Mountain Protocol and $USDM.

Also announcing a financing round led by @nic_carter from @CastleIslandVentures with participation from @cbventures, @newformcapital, @daedalus_angels, @ameensol, @ASvanevik, @maraoz, @demibrener among others. pic.twitter.com/rWLYpwStHL

— Mountain Protocol | USDM (@MountainUSDM) September 11, 2023

Mountain Protocol’s USDM stablecoin has attracted substantial investment, with CastleIsland Ventures and Coinbase leading a financing round that includes notable participation from NewForm Capital, Daedalus Angels, Ameen Soleimani, Alex Svanevik, Mariano Conti, Demi Brener, and others. This impressive backing speaks to the growing interest in stablecoins and their role in the cryptocurrency ecosystem.

Stablecoins have emerged as a dominant force in the crypto space, providing a bridge between the traditional financial world and the digital realm. They offer users a reliable and stable store of value, and with USDM, Mountain Protocol aims to take this concept to the next level.

USDM is an ERC20 token that can be minted and redeemed at a 1:1 ratio by Know Your Business (KYB) compliant users. What sets USDM apart is its backing by short-term US Treasury bonds, providing users with an annual interest rate of 5%. This unique feature allows holders to earn daily rewards through a rebasing mechanism, similar to Lido Finance’s stETH.

One of the primary goals of USDM is to democratize access to high-yield financial products, such as U.S. Treasury yields, for users worldwide. Previously, these opportunities were largely limited to U.S. residents. However, USDM opens the door for anyone with a crypto wallet to participate in these high-yield opportunities.

Mountain Protocol has been granted a Digital Asset Business license (#202302512) by the Bermuda Monetary Authority (BMA), a highly respected financial regulator globally. This license authorizes Mountain Protocol to issue, sell, and redeem USDM, underscoring the project’s commitment to regulatory compliance and customer protection.

Bermuda has gained international recognition for its robust regulatory framework and adherence to the rule of law. The country’s progressive stance on digital assets, exemplified by the Digital Asset Business Act of 2018, has attracted notable players in the cryptocurrency industry, including Coinbase, Circle, and Cash App, all of whom have received licenses from the BMA.

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