Pantera-backed Injective adds USMD support with Mountain Protocol integration

Injective, the financial blockchain developed by Binance and backed by prominent investors such as Pantera, Jump Crypto, and Mark Cuban, has announced a significant integration with Mountain Protocol.

Injective (INJ) has specifically added support for Mountain Protocol’s yielding stablecoin USDM, allowing its users to use it as collateral for derivatives trading.

Why does it matter?

With the integration, Injective users will earn yields on the stablecoin’s Treasury Bond-backed assets, the companies said in a press release.

Users will also be able to use USDM as collateral in derivatives transactions, marking the first time that users will be able to use the regulated and compliant stablecoin as collateral in recurring transactions.

Injective-based decentralized exchange Helix will become the first dApp to offer USDM as collateral for derivatives trading.

Eyeing the RWA market

Injective Labs says that USDM support benefits the blockchain network’s real-world asset ecosystem.

According to Eric Chen, co-founder and CEO of Injective Labs, partnering with Mountain Protocol bridges traditional and decentralized finance by offering users the benefits of both platforms.

USDM expands opportunities for crypto users amid growth in the RWA market. The Injective Labs executive also noted that the security and sustainability backed by US Treasury bonds are vital to Injective’s contribution to the RWA space.

The collaboration with Mountain Protocol comes after Injective announced it has integrated with Ondo Finance to bring tokenized treasury token USDY to its ecosystem. USDY will also help with Injective’s RWA use case.

Ownership of returns returns to individuals

USDM is a significant addition to Injective’s RWA marketplace and benefits INJ users.

Specifically, the partnership allows Injective to offer access to traditional assets without using traditional third-party providers. Doing so frees users from the high fees or regulatory and economic challenges of legacy providers like banks.

Chen noted that the integration with Mountain Protocol and USDM support allows users to have “full ownership of the returns.”