June 06, 2024
Mountain Protocol, the company behind the yield-generating USDM stablecoin, has successfully raised $8 million in a Series A financing round.
Project | Latest Raise | Latest Raise Date | Stage | Total Raise | Lead Investor | Category |
Mountain Protocol | $8M | June 06, 2024 | Series A | $8M | Multicoin Capital | FinTech |
Mountain Protocol announced that the round was spearheaded by Multicoin Capital, with contributions from Castle Island Ventures, Coinbase Ventures, and other investors. In an interview with The Block, Martin Carrica, the co-founder and CEO of Mountain Protocol, confirmed that the round consisted solely of equity. He chose not to disclose the company’s valuation.
According to Carrica, this Series A round has increased Mountain Protocol’s total funding to $12 million. The firm had previously secured $4 million in a seed round in September of the previous year.
Mountain has a strategy to increase the issuance of USDM by extending its support to additional blockchains like Solana, Aptos, Sei, and Monad, and by incorporating it into a greater number of DeFi protocols. Furthermore, Mountain intends to collaborate with fintech companies, cryptocurrency exchanges, and market makers to enhance the supply of the stablecoin.
About Mountain Protocol
Mountain Protocol is the entity responsible for issuing USDM, a stablecoin that yields returns and is “fully backed by U.S. Treasuries.” Mountain Protocol asserts that it operates under the regulation of the Bermuda Monetary Authority and maintains USDM reserves in accounts that are insulated from bankruptcy, separate from the company’s operational accounts. USDM is an ERC-20 token that rebases, is backed on a one-to-one basis with the U.S. dollar, and currently offers approximately a 5% yield.
The Mountain protocol was initiated in the previous October, and the existing total supply of USDM is approximately 50 million tokens, with nearly 40 million tokens solely on Ethereum, as stated by Carrica. The primary application of the stablecoin at present is to manage the treasuries of Decentralized Autonomous Organizations (DAOs), according to Carrica. He added that, with the new funding secured, Mountain Protocol aims to broaden its use cases and increase its supply.
Website: https://mountainprotocol.com/
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About Investor
Investor: Multicoin Capital
Multicoin Capital is a thesis-driven investment firm that specializes in cryptocurrencies, tokens, and blockchain companies that are reshaping trillion-dollar markets. The firm manages a hedge fund and several venture funds, investing across both public and private markets.
Founded in May 2017, Multicoin Capital has developed a reputation for being forward-leaning, independent thinkers2. They are known for pioneering token economic models, valuation methodologies, and challenging long-standing assumptions that the crypto ecosystem takes for granted.
As a crypto-native fund, they actively engage and participate in the networks they invest in. They are intimately familiar with the crypto technology landscape and market structure. They are hands-on investors and will do everything in their power to maximize the success of their portfolio companies.
Today, they manage long duration capital on behalf of storied venture capital funds, family offices, institutions, and high net worth individuals. Their team hails from diverse backgrounds, giving them a competitive edge in staying ahead.
Their mission is to accelerate the transition from the centralized institutions of the industrial age to the decentralized institution of the internet age.
Location: Austin, TX
Website: https://multicoin.capital/
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