Mountain Protocol Unveils USDM, a Stablecoin that Generates Passive Income

The Mountain Protocol project has recently announced the launch of the USDM stablecoin, an ERC-20 token backed by US Treasury bonds that offers a passive income of 5% per annum.

The asset issuer received a digital asset issuer license from the Bermuda Monetary Authority on August 27 and is available to users who have completed KYB.

Residents of the United States are unable to use the yield feature. Furthermore, the company noted that the “yield rebasing mechanism” of USDM is similar to stETH from Lido Finance.

Mountain Protocol also closed a fundraising round led by Nick Carter of Castle Island Ventures that had participation from Coinbase Ventures, New Form Capital, Daedalus Angels, and more.

Due to regulatory requirements, the amount of funds received is not disclosed.

This news follows the prediction of Kaiko analysts in August suggesting the beginning of “stablecoin wars” due to an imbalance of the main USDT-USDC pool on Uniswap V3 and 3pool on Curve caused by sales of the “stable coin” from Tether.