...S&P Global Ratings assesses Mountain Protocol USD (USDM)'s ability to maintain a stable price vis-a-vis the U.S. dollar at 3 (adequate). USDM was launched in September 2023 by Mountain Protocol Ltd., which is regulated by the Bermuda Monetary Authority (BMA). Our asset assessment of 2 (strong) reflects USDM's highly liquid, low-risk reserves, while noting risks related to asset custody. The reserve's assets comprise mainly short-term U.S. treasury bills with a weighted average maturity of 60 days. USDM's reserves are segregated from its issuer's assets (per the regulation) and kept with U.S.-based custodians. In our view, the creditworthiness and lack of public disclosure of the custodians represent an additional source of risk for USDM's reserves. USDM is a yield-bearing stablecoin, where rewards are distributed as additional USDM. The issuer has sole discretion about whether any reward will be distributed. Our analysis does not cover the level of yield or its continuity over time. Our...
