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 provide 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 absolutely backed by short-term U.S. Treasuries, with the distinction that USDM supplies customers day by day rewards within the type of rebasing, at the moment at a charge of 5% APY,” Mountain Protocol added. “The rebasing mechanism is similar to Lido Finance’s stETH and can be acquainted to most in crypto.”
USDM is just not out there to U.S. prospects, nor has the asset been registered as a U.S. safety.
Whereas Mountain Protocol stated 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 normal monetary system. The entire provide of Ethereum stablecoins has been declining over the previous 12 months and at the moment stands round $74 billion, in keeping with The Block’s Information Dashboard.
Mountain Protocol fundraise
Mountain Protocol additionally introduced a fundraise led by Nic Carter from Fort Island Ventures, with further 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 on account of regulatory necessities.