Mountain Protocol, Issuer of USDM, Partners with Borderless.xyz to Bring Yield to Payments

Unlocking New Revenue Opportunities in Payments with Yield-Bearing Stablecoins

In today’s fast-paced financial landscape, payments companies and payment service providers (PSPs) are always searching for ways to improve their offerings and generate new sources of revenue. One of the most exciting developments in this space is the rise of yield-bearing stablecoins—digital assets fully backed by fiat reserves that pay interest on-chain. At Borderless.xyz, we are thrilled to partner with Mountain Protocol, the issuer of USDM, to highlight how yield-bearing stablecoins can transform the payments ecosystem and unlock new revenue opportunities for financial institutions around the globe.

Bridging the Gap Between Treasury and Payments

Historically, corporate treasury teams have been the ones focused on generating yield, often using traditional instruments like money market funds and T-bills to earn interest on parked capital. Meanwhile, the working capital used in day-to-day payments and cash management earned little to no yield. This created a significant opportunity gap for businesses—treasury assets were put to work, but operational or payments-related funds weren’t.

Yield-bearing stablecoins like USDM are fundamentally reshaping this dynamic. Instead of having one pool of capital in low-risk investment vehicles and another pool of capital idly sitting in transactional accounts, businesses can now take advantage of the same digital asset for both holding value (and earning yield) and making payments in real time. This dual-purpose functionality means that every dollar a business controls can work harder to generate revenue, even while it remains liquid and readily available.

24/7 Global Money Movement and Reduced Capital Lock-Up

Cross-border payments often require payments companies and PSPs to pre-deploy large amounts of capital in various bank accounts worldwide to facilitate liquidity. This setup can be extremely capital-inefficient: With traditional banking rails, sending money after hours or on weekends is cumbersome, and the funds deposited in multiple international accounts usually earn little interest (if any) while waiting to be moved.

By leveraging stablecoins, companies can tap into 24/7 on-chain money movement without geographical or banking-hour limitations. Global liquidity becomes more transparent, faster, and cost-efficient. With yield-bearing stablecoins, this efficiency also comes with a lucrative bonus: the funds deployed for liquidity no longer sit dormant. They can continue earning yield, effectively paying companies to maintain that liquidity for cross-border transactions. That means less capital locked up in non-interest-bearing reserves and more revenue generated by simply upgrading the way money is moved.

Capturing Yield Instead of Handing It Over to Sponsor Banks

For many fintechs, the reliance on sponsor banks has been a necessary step in launching financial products. These banks hold customer funds and often reap the benefits of any interest generated on the underlying deposits. As a result, fintechs and their customers typically see very little—or zero—of that income.

Yield-bearing stablecoins like USDM offer a compelling alternative. By integrating a stablecoin solution and managing on-chain reserves, fintechs can capture the yield themselves rather than handing it over to sponsor banks. This shift can significantly increase revenue streams and allow fintechs to add more value to their customers, whether by offering higher rewards programs, reducing fees, or introducing innovative financial products that share these gains.

Looking Ahead

The convergence of treasury management and payments is well underway, and yield-bearing stablecoins are at the heart of this transformation. By enabling real-time, borderless transfers while simultaneously generating yield, stablecoins like USDM and global orchestration networks like Borderless.xyz present an unprecedented opportunity for payments companies, PSPs, and fintechs to:

• Enhance liquidity and decrease the amount of idle capital in non-interest-bearing reserves.

• Streamline cross-border operations and reduce the costs associated with maintaining multiple international accounts.

• Boost profitability by capturing yield that traditionally went to sponsor banks.

For innovators in the space, the message is clear: embracing yield-bearing stablecoins is no longer just a fringe experiment—it’s a powerful strategic move that can fundamentally improve operational efficiency and create compelling new business models. At Borderless.xyz, we’re excited to play a key role in this evolution, providing the global stablecoin orchestration network that makes it possible to seamlessly integrate yield-bearing stablecoins into everyday payments.

Ready to learn more about how USDM can unlock yield for your payment operations?
Stay tuned for more updates from our partnership with Mountain Protocol, and reach out to our team at Borderless.xyz to explore how you can transform your payments infrastructure with on-chain, yield-generating solutions. The future of global payments—and new revenue opportunities—awaits.