Mountain Protocol, which was licensed by the Bermuda Financial Authority as a digital asset issuer on July 27, is launching what it says is the primary nationally-regulated, yield-bearing stablecoin known as UDSM.
The ERC-20 token was designed to offer non-U.S. customers entry to U.S. Treasury yields and can be utilized throughout a myriad DeFi protocols, Mountain Protocol wrote in a Monday in a social media thread.
“The token is totally backed by short-term U.S. Treasuries, with the distinction that USDM supplies customers every day rewards within the type of rebasing, at the moment at a fee of 5% APY,” Mountain Protocol added. “The rebasing mechanism is similar to Lido Finance’s stETH and will likely be acquainted to most in crypto.”
USDM is just not accessible to U.S. clients, nor has the asset been registered as a U.S. safety.
Whereas Mountain Protocol mentioned that stablecoins have been the “unquestionable killer use-case of blockchains,” it famous that risk-free yields at the moment round 5% are pushing customers again into the standard monetary system. The whole provide of Ethereum stablecoins has been declining over the previous yr and at the moment stands round $74 billion, in response to The Block’s Information Dashboard.
Mountain Protocol fundraise
Mountain Protocol additionally introduced a fundraise led by Nic Carter from Fortress Island Ventures, with extra participation from Coinbase Ventures, New Type Capital, Daedalus Angels, and others.
Mountain Protocol co-founder and CEO Martin Carrica informed The Block that the quantity of the fundraising spherical is confidential as a result of regulatory necessities.
