Anchorage Digital, a federally chartered crypto bank and custodian, has announced a major next step. They’ve entered into a definitive agreement to buy Mountain Protocol, a stablecoin issuer. This acquisition is an indication of Anchorage’s strategic direction to continue extending their support for institutional stablecoin adoption. The agreement comes at a time when stablecoin adoption is soaring. Payment companies, fintech companies, and banks are increasingly interested in this asset class, particularly with potential legislation in the U.S. looming on the horizon.

Nathan McCauley, co-founder and CEO of Anchorage, emphasized the growing importance of stablecoins, stating, "Stablecoins are becoming the backbone of the digital economy." The acquisition will integrate Mountain Protocol's technology, team, and licensing structure into Anchorage's operations, subject to customary closing procedures and regulatory approvals.

Mountain Protocol recently released its USDM token into the world. It increased rapidly to a $150 million supply within just a few months. RWA.xyz data shows that the USDM supply has dropped to $50 million since then. As a function of the acquisition, Mountain Protocol will retire its USDM token through an orderly wind-down process.

Either way, stablecoins are tied to outside assets like the U.s. dollar. With their programmable transfer capabilities, they offer much faster and cheaper alternative to traditional payment systems. We’re really optimistic about the future of the stablecoin market in general,” said experts at Citi. They predict its expansion will explode from today’s $230 billion to between $3-$7 trillion by 2030. They argue that stablecoins have the potential to create a “ChatGPT moment” for widespread blockchain adoption.

The deal follows USDC issuer Circle’s similar move last week. Circle recently gained a competitive advantage when it acquired the tokenization startup Hashnote, creator of the yield-bearing USDY token. Krisztian Sandor, reporting on U.S. markets and focusing on the stablecoin/tokenization/real-world-assets area, notes an increasing demand for this very hot field.