Investment firm Multicoin Capital heads $8 million Series A funding for data marketplace Mountain Protocol.

Mountain Protocol, a leading decentralized finance (DeFi) protocol, has successfully completed an $8 million Series A round, led by Multicoin Capital. The fundraising round also attracted participation from Castle Island Ventures, Coinbase Ventures, and other investors, bringing the total raised to $12 million.

The fundraising was a pure equity round and marks a significant milestone for Mountain Protocol. The company plans to utilise the fresh capital to expand the USDM stablecoin offering to blockchains including Solana, Aptos, Sei, and Monad.

Mountain Protocol's USDM stablecoin is a yield-earning token backed one-to-one with the US dollar. It is primarily being used to manage treasuries of decentralized autonomous organizations (DAOs). Currently, nearly 40 million of the USDM token supply is on Ethereum, with the total supply standing at 50 million tokens.

The stablecoin market has emerged as one of the fastest-growing segments this year, with numerous crypto companies launching new stablecoins. In April, Ripple launched a stablecoin pegged to the US dollar, and Real-world asset stablecoin issuer Anzen expanded to multiple chains and protocols following a $4 million fundraising. VanEck Scion also raised $12 million for its stablecoin entity Agora in April.

Market makers and traders are increasingly interested in holding their book on yield-bearing stablecoins like USDM. The ERC-20 rebasing token currently provides about a 5% yield, and Ethereum stablecoin volume on Ethereum has surpassed $1 trillion.

After the expansion, USDM stablecoin will be made available for other use cases, further solidifying Mountain Protocol's position in the DeFi landscape. With the successful Series A round, Mountain Protocol is poised to make significant strides in the stablecoin market. The company plans to increase the USDM token supply by 10x to 500 million, offering more opportunities for users and investors alike.