Anchorage Expands Crypto Portfolio With New Acquisition

Anchorage Digital, a reputable digital asset platform and infrastructure provider, has moved into the stablecoin space. The company announced on May 12 that it had acquired Mountain Protocol, known for its stablecoin, Mountain USD (USDM). The company revealed that the deal is part of its broader plan to provide more potent and secure crypto services for large investors. Although the deal’s financial terms were not shared, it shows how traditional finance and crypto are coming together. Mountain Protocol To Shut Down Stablecoin Operations Mountain USD (USDM) was launched in late 2023 and grew quickly, reaching a market value of $155 million by March 2024. However, its value has since dropped to less than $50 million, with only around 10,820 holders left. As part of this deal, Mountain Protocol will wind down USDM trading. The company has stopped creating new tokens and will continue paying rewards for 30 more days. After this deadline, users will no longer earn interest on their tokens. USDM holders can still redeem their tokens on Mountain Protocol or trade them on other platforms. The Anchorage Focus on Stablecoins In August 2024, Anchorage launched a reward program for institutions holding PayPal’s stablecoin, PYUSD. This latest acquisition shows that the company is increasing its focus on stablecoins and growing its crypto services. Anchorage CEO Nathan McCauley said stablecoins are becoming more functional in the crypto market. He believes more businesses will use them in the future. With this latest move, Anchorage is ready to offer trusted and safe stablecoin services to big clients. This development follows recent regulatory developments that have impacted stablecoins. In late April, the U.S. Securities and Exchange Commission ( SEC) closed its investigation into PayPal’s stablecoin, PYUSD. The regulatory agency also chose not to take legal action. This helped improve trust in dollar-backed stablecoins and created a better environment for them to grow. Stablecoins Are Gaining Ground Stablecoins are becoming more popular in the financial world and now have a market value of over $200 billion. As more people and companies adopt these asset classes, there is a growing need for secure and regulated digital dollar services. At the same time, Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, recently warned that tighter regulation of crypto assets could lead to increased demand for dark stablecoins . These stablecoins are more complex to track and not fully regulated, which could raise concerns for governments and financial institutions. Nevertheless, Anchorage’s buyout of Mountain Protocol strengthens its position in the stablecoin world. It can now offer more stablecoin services to large investors and businesses. The post Anchorage Expands Crypto Portfolio With New Acquisition appeared first on TheCoinrise.com .

Source: The Coin Rise