Injective Welcomes USDM: Yield-Bearing Stablecoin Launches

• Injective integrates Mountain Protocol, introducing USDM, a native yield-bearing stablecoin backed by Treasury bills.
• USDM offers a 5% annual yield, enabling various real-world asset use cases within the Injective ecosystem.

Injective has announced the launch of Mountain Protocol on its network, introducing the first native yield-bearing stablecoin (USDM) to the Injective ecosystem. This is an important milestone since users may now use Mountain Protocol with Injective dApps while receiving yield from tokenized Treasury bills.

Mountain Protocol, which is recognized for issuing USDM, is backed by major investors like Multicoin Capital, Coinbase Ventures, and Castle Island Ventures.

1/ Mountain Protocol is launching on Injective to bring the first native yield-bearing stablecoin (USDM) into the Injective ecosystem.

Users can now leverage @MountainUSDM on Injective dApps while earning yield from tokenized t-bills. https://t.co/mK6tWvTfAU

— Injective (@injective) July 24, 2024

USDM: A Unique Stablecoin Backed by Treasury Bills Offering Daily Yield 

USDM is unusual in its stablecoin structure, as it is backed by Treasury bills, providing a strong base. Unlike most other stablecoins, USDM allows users to earn and retain daily income on their holdings, with Mountain Protocol currently providing a 5% annual yield.

This integration enables a variety of real-world asset (RWA) application cases on Injective, increasing its utility. For example, USDM can now be used as a margin for derivatives on Injective-based decentralized exchanges (DEXs), giving traders a yield and marking the first time USDM can be used as collateral for everlasting contracts.

The collaboration between Mountain Protocol and Injective represents a new era of innovation. As traditional finance (TradFi) moves on-chain, Injective continues to shape the future of finance by pioneering new use cases for asset tokenization.

This is another big milestone for Injective, following their prior collaboration with Ondo Finance, which created the USDY token to improve capital efficiency in Injective dApps. USDY is now widely employed in a variety of Injective-based applications, thereby increasing capital efficiency.

As we previously noted, another notable breakthrough was the introduction of AINJ, the Injective Staking Exchange Traded Product (ETP), which aims to bridge the gap between traditional finance and decentralized finance (DeFi). AINJ is available from 21Shares, a well-known supplier of crypto ETPs.

This innovative offering exemplifies Injective’s commitment to combining traditional financial procedures with decentralized platforms.

Meanwhile, Injective’s native token, INJ, is trading at $24.61 at the time of writing, up 3.95% over the last 24 hours on a trading volume of $126.41 million.