Mountain Protocol Launches USDM: A Yield-Bearing Stablecoin
In a recent announcement, Mountain Protocol revealed the launch of USDM, an ERC-20 yield-bearing stablecoin. The project has obtained a digital asset business license from the Bermuda Monetary Authority, allowing it to issue, sell, and redeem USDM. According to the post, USDM is fully backed by short-term U.S. treasuries and offers users daily rewards through rebasing at a rate of 5% APY. The rebasing mechanism is similar to Lido Finance’s stETH and is designed to be familiar to the crypto community. Besides, USDM provides non-U.S. users with access to U.S. Treasury yields and other DeFi protocols. However, it’s essential to note that USDM is not registered under the U.S. Securities Act of 1933. Additionally, Mountain Protocol also announced a financing round led by Castle Island Ventures, with participation from other prominent investors.
An early adopter of digital assets
Bermuda has been at the forefront of embracing digital assets. It introduced the Digital Asset Business Act in 2018, creating a regulatory framework for cryptocurrencies that has garnered praise from industry players. Notably, Coinbase, the second-largest exchange globally, chose Bermuda as one of its international hubs, holding a Class F License. Another example is Circle, the platform behind the stablecoin USDC, which used Bermuda to launch the world’s first regulated institutional yield product.
Hot Take: Mountain Protocol Empowers Users with Yield-Bearing Stablecoin
Mountain Protocol’s launch of USDM brings a new opportunity for crypto users by offering a yield-bearing stablecoin. With full backing from short-term U.S. treasuries and daily rewards through rebasing, USDM provides users with a potential 5% APY. The protocol’s ties to Lido Finance’s stETH make it accessible to the crypto community, increasing familiarity and ease of use. Furthermore, USDM extends its benefits beyond U.S. users by granting access to U.S. Treasury yields and other DeFi protocols for non-U.S. users. However, it’s crucial to remember that USDM is not registered under the U.S. Securities Act of 1933. Mountain Protocol’s financing round, led by Castle Island Ventures and joined by notable investors, showcases the growing confidence in the project’s potential and further cements its position in the market.
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