Mountain Protocol (USDM, wound down)

What is Mountain Protocol?

Mountain Protocol was the issuer of USDM, a regulated yield-bearing stablecoin backed by short-term US Treasuries. When it launched in 2023, USDM appreciated over time as the underlying Treasury yield accrued to holders, offering a passive way to earn real-world yield on-chain instead of leaving value idle in stablecoins like USDC and USDT.

USDM is no longer a live product. In May 2025 Anchorage Digital acquired Mountain Protocol, and USDM entered a phased wind-down: new minting stopped, rewards fell to zero, and by August 2025 the backing was moved to a Uniswap USDC pool so that remaining holders could redeem. There is no new issuance and no active yield today.

This page is kept as a historical reference. The sections below explain how USDM worked and how it was sunset, so readers evaluating current options on Fensory understand that USDM is a wound-down product rather than an active earning opportunity.

How Mountain Protocol Worked

The USDM Mechanism

During its active life, USDM was backed 100% by short-term US Treasury securities:

• Held in segregated accounts at regulated custodians
• Daily pricing based on T-bill NAV
• Monthly attestations from independent auditors
• Operated under a Bermuda Monetary Authority framework

Unlike rebasing tokens that changed balances, USDM used a share-based system:

• Token value increased relative to USD
• 1 USDM started at approximately $1.00
• Value grew daily based on Treasury yields while the product was live
• No claiming or staking was required, just holding

USDM could be redeemed for USD through verified accounts, and after the wind-down its backing was moved to a Uniswap USDC pool so holders could exit.

The Original USDM Thesis

USDM's pitch was that it passed Treasury yield through to holders rather than retaining it at the issuer level, in contrast to non-yield stablecoins where the issuer keeps the interest. That thesis has since been picked up and scaled by other issuers; USDM itself no longer operates.

Wind-Down Timeline

• May 2025: Anchorage Digital acquired Mountain Protocol
• Post-acquisition: New USDM minting stopped and rewards fell to zero
• August 2025: Backing moved to a Uniswap USDC pool to facilitate redemptions
• Today: No new issuance, no active yield, USDM operates only as a redeemable legacy token

Why USDM Was Sunset

Following the Anchorage Digital acquisition, the team consolidated around Anchorage's regulated infrastructure rather than continuing USDM as a standalone yield-bearing stablecoin. Rather than keep an independent product running, they chose a phased wind-down that let holders redeem in an orderly way.

Risk Considerations

Because USDM is wound down, the relevant considerations differ from those of an active stablecoin:

USDM no longer accrues Treasury yield. Any historical APY figures reflect the period when the product was live.

The token now functions primarily as something to redeem, with backing routed through a Uniswap USDC pool rather than a live reserve strategy.

Secondary liquidity for a sunset token can be thin, so holders should confirm redemption paths before assuming exit availability.

Frequently Asked Questions

No. After Anchorage Digital acquired Mountain Protocol in May 2025, USDM was sunset: minting stopped and rewards fell to zero.

No. USDM no longer accrues Treasury yield. It is a wound-down product, not an active earning option.

By August 2025 the backing was moved to a Uniswap USDC pool so that remaining holders could redeem.

Anchorage Digital acquired Mountain Protocol in May 2025.

Use Fensory to compare current yield-bearing stablecoins rather than relying on a sunset product like USDM.