Anchorage Digital, the sole federally chartered digital asset bank in the U.S., is enhancing its stablecoin capabilities with the acquisition of Mountain Protocol, a regulated stablecoin issuer.
The announcement was made on May 12, with the acquisition pending regulatory approval and customary closing conditions.
While specifics regarding the financial terms of the deal remain undisclosed, Anchorage has confirmed plans to incorporate Mountain Protocol’s team, technology, and licensing framework into its existing infrastructure.
This acquisition highlights a burgeoning trend of mergers between cryptocurrency-centric firms and traditional financial institutions.
Stablecoins as Fundamental Elements of Cryptocurrency Economy
According to Anchorage CEO Nathan McCauley, stablecoins serve as “the backbone of the crypto economy,” and he anticipates that “every business” will eventually leverage stablecoins for daily operations.
Mountain Protocol CEO Martin Carrica stated that the collaboration would enable both entities to address the increasing global demand for stablecoin services, merging Anchorage’s institutional crypto platform with Mountain’s expertise in stablecoins.
Mountain Protocol, regulated by the Bermuda Monetary Authority, is recognized for its issuance of Mountain USD (USDM), a yield-bearing stablecoin based on Ethereum.
As part of the acquisition process, Mountain Protocol has announced the planned wind-down of USDM. Minting of the stablecoin ceased on May 12, and while rewards are set to continue for an additional month, they will be reduced to a 0% annual yield thereafter.
Anchorage Digital is thrilled to announce our acquisition of Mountain Protocol.
As stablecoins find global product market fit, we’re empowering institutions to meet surging demand and lead in the stablecoin space. pic.twitter.com/qzW7RO6lYj
— Anchorage Digital Consensus (@Anchorage) May 12, 2025
Users can still redeem USDM through Mountain Protocol’s platform, and other holders are urged to convert their tokens on secondary markets.
USDM had peaked with a market cap of $155 million in March 2024 but has since fallen below $50 million, according to estimates from RWA.xyz, which reports around 10,820 USDM holders active in the market.
This acquisition follows Anchorage’s introduction of a stablecoin rewards program in 2023, aimed at providing yield for institutions holding PayPal USD (PYUSD).
With Mountain Protocol now integrated, Anchorage seeks to further fortify its position within the dynamic stablecoin landscape.
Tinian Island Advances Plans for Its Own Stablecoin
Tinian, a small island in the Northern Mariana Islands, is on the path to potentially launching its own stablecoin following the territory’s Senate vote to override a prior veto from Governor Arnold Palacios.
On May 9, the Senate voted 7-1 to advance legislation permitting the Tinian government to issue licenses to internet casinos and create a dollar-backed “Tinian Stable Token.”
The bill now moves to the 20-member House of Representatives, where it requires a two-thirds majority to bypass the governor’s veto and become law.
Meanwhile, discussions surrounding stablecoin regulation continue to evolve.
Legislative attempts such as the GENIUS Act and the STABLE Act have faced setbacks in Congress, primarily due to political discord linked to former President Donald Trump’s expanding crypto initiatives.
This tension persists even as there’s a growing bipartisan appetite for advancing crypto regulation.
The stablecoin legislation, led by Senator Bill Hagerty (R-Tenn.), received approval from the Senate Banking Committee in March, with support from five Democrats.
However, progress appears to have stalled amid increasing political fragmentation.
Democratic concerns have reportedly grown, particularly after a private caucus meeting last week where Senate Majority Leader Chuck Schumer advised colleagues against committing to the bill in its current iteration.
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