Anchorage Digital, a leading crypto bank, has broadened its stablecoin portfolio through the acquisition of Mountain Protocol. Mountain Protocol, the stablecoin issuer, has announced the winding down of its primary stablecoin, Mountain USD (USDM). The acquisition, pending customary closing conditions and regulatory approval, will merge the Mountain Protocol team, technology stack, and licensing framework into Anchorage’s existing services, as per a statement released on May 12. While the financial terms of the deal were not disclosed, this acquisition signifies a growing trend of mergers between crypto and traditional finance firms. Anchorage CEO Nathan McCauley emphasized the increasing importance of stablecoins in the crypto economy, foreseeing widespread adoption across various industries. Mountain Protocol CEO Martin Carrica expressed optimism about meeting the rising global demand for stablecoin services following the acquisition. Anchorage is the sole federally chartered digital asset bank in the U.S., while Mountain Protocol’s stablecoin services are regulated by the Bermuda Monetary Authority. This move comes nearly nine months after Anchorage introduced a stablecoin rewards program for institutions holding the PayPal USD (PYUSD) stablecoin. Mountain Protocol announced the orderly wind-down process for USDM, its yield-bearing stablecoin, following the acquisition. Minting of USDM ceased on May 12, with rewards remaining active for 30 days before transitioning to a 0% APY rate. USDM holders are encouraged to redeem their tokens through the platform or swap them for other cryptocurrencies on exchanges. It’s important to note that Mountain Protocol’s Ethereum-based USDM is distinct from Mehen Finance’s USDM stablecoin on the Cardano network. USDM initially achieved a market cap of $155 million in early 2024 but has since declined below $50 million, with approximately 10,820 holders, as estimated by RWA.xyz.