Enhancing USDM Liquidity: Wintermute Collaborates with Stablecoin Issuer Mountain Protocol

Crypto Market Maker Wintermute Partners with Mountain Protocol for Liquidity Boost

Crypto market maker Wintermute has teamed up with stablecoin issuer Mountain Protocol to enhance liquidity for USDM. USDM provides non-U.S. users with access to U.S. Treasury bonds that yield returns.

Through this partnership, users will be able to redeem their USDM for USDC at any time using Wintermute’s liquidity provisioning. This process eliminates the banking risks associated with USDM reserves, as stated in a shared statement.

Mountain Protocol explained that Wintermute will trade USDM for USDC and hold the USDM in their books until traditional finance (TradFi) markets open. Once the T-bills held in the USDM Reserves are liquidated, Mountain Protocol can repurchase the USDM from Wintermute.

This arrangement allows users to immediately liquidate their USDM while enabling Mountain Protocol to access TradFi liquidity up to four days later, considering weekends and the t+2 settlement and onramp time.

Mountain Protocol’s Funding History

In September 2022, Mountain Protocol secured undisclosed seed funding led by Nic Carter from Castle Island Ventures. The funding amount was not disclosed due to regulatory considerations.

It is important to note that USDM is not available in the United States and has not been registered as a U.S. security. However, the Bermuda Monetary Authority granted a digital asset issuer license to Mountain Protocol on July 27.

Hot Take: Strengthening Liquidity for USDM through Wintermute-Mountain Protocol Partnership

The collaboration between Wintermute and Mountain Protocol aims to bolster liquidity for USDM, providing non-U.S. users with convenient access to U.S. Treasury bonds. By leveraging Wintermute’s liquidity provisioning, users can easily redeem their USDM for USDC while avoiding banking risks associated with USDM reserves.

This partnership also facilitates the seamless process of liquidating USDM, allowing Mountain Protocol to access TradFi liquidity within a few days. Mountain Protocol’s undisclosed seed funding, led by Nic Carter, further supports the development of this innovative initiative. With the Bermuda Monetary Authority’s licensing, Mountain Protocol continues to solidify its position as a digital asset issuer.