The Mountain Protocol project announced the launch of the USDM stablecoin, which is backed by US Treasury bonds and generates passive income of 5% per annum.
According to a press release, the company received a digital asset issuer license from the Bermuda Monetary Authority on August 27.
USDM is an ERC-20 token that can be redeemed for $1. Users who complete the procedure will be able to receive the coin KYB. However, the yield feature is not available to residents of the United States.
According to the developers, USDM can also be used inside DeFi applications.
“From protocols that improve the yield of liquidity providers to exchanges that want to launch their own licensed stablecoins, we see many interesting uses for USDM,” added issuer co-founder Martin Carrica.
The company noted that the “yield rebasing mechanism” is similar to stETH from the liquid staking service Lido Finance.
Mountain Protocol also announced the closing of a funding round led by Nick Carter of Castle Island Ventures, with participation from Coinbase Ventures, New Form Capital, Daedalus Angels and others. The amount of funds received is not disclosed due to regulatory requirements.
Let us recall that in August, Kaiko analysts predicted the beginning of “stablecoin wars.” Experts drew attention to the imbalance of the main USDT-USDC pool on Uniswap V3 and 3pool on Curve due to the escalation of sales of the “stable coin” from Tether.
That same month, payments giant PayPal announced the launch of the stablecoin PayPal USD (PYUSD). The partner was Paxos.
According to Bernstein researchers, the total capitalization of fiat-pegged crypto assets will grow from the current $125 billion to $2.8 trillion over the next five years.
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