Wintermute and Mountain Protocol Strengthen USDM Liquidity
Date: 2023-10-18 Author: Dima Zakharov Categories: BUSINESS
Enhancing USDM Liquidity: Wintermute and Mountain Protocol in a Strategic Partnership
The world of cryptocurrencies continues to evolve, offering users new opportunities and solutions. Recently, cryptocurrency marketer Wintermute announced a strategic partnership with Mountain Protocol, the stablecoin issuer, with the aim of increasing the liquidity of USDM, a stablecoin tied to the U.S. dollar. This event holds significant importance and various interesting aspects.
Liquidity and Access to U.S. Treasury Bonds:
The partnership between Wintermute and Mountain Protocol is focused on providing access to non-U.S. citizen users to U.S. Treasury bonds through USDM, enabled by the liquidity provided by Wintermute. Users can exchange their USDM for USDC at any time, thus avoiding banking risks that might arise while holding USDM reserves.
Liquidation of Treasury Bills and Timelines:
According to Mountain Protocol's statements, Wintermute will exchange USDM for USDC and hold USDM on its accounts until TradFi markets open, referring to traditional financial instruments. Mountain Protocol will then be able to liquidate Treasury bills, increasing their volume and repurchasing USDM from Wintermute. This allows users to instantly liquidate their USDM, ensuring access to U.S. Treasury bonds and other traditional assets. It's important to note that this event is also related to TradFi settlements and the start time of t+2, adding complexity to this strategy but providing new opportunities for the user experience.
Past Financing of Mountain Protocol:
Mountain Protocol previously secured undisclosed initial funding under the guidance of Nick Carter from Castle Island Ventures in September 2022. While the exact funding amount is not disclosed, it demonstrates investor trust and interest in the project. This funding also helped facilitate the advancement of the partnership with Wintermute and the expansion of USDM liquidity.
USDM and Regulation:
USDM is a stablecoin tied to the U.S. dollar, and it's important to note that it is not available for use in the U.S. and is not registered as a security in the country. The Bermuda Monetary Authority licensed Mountain Protocol as a digital asset issuer, signaling a commitment to regulatory compliance and maintaining high standards in the cryptocurrency space.
