Ethereum News Today: MegaETH Replaces Sequencer Margins with Stablecoin Yield Innovation

MegaETH, an Ethereum scaling solution developed by MegaLabs, has unveiled a new stablecoin, USDm, in a strategic partnership with DeFi protocol Ethena. This initiative is designed to replace traditional sequencer margins with reserve yield to sustain network operations, aligning incentives among the chain, users, and developers [1]. Unlike conventional Layer 2 networks that generate revenue through sequencer fee markups, USDm aims to keep fees low and stable by leveraging the yield from its stablecoin reserves [2].

The first iteration of USDm will be issued on Ethena’s USDtb platform, which is backed by BlackRock’s tokenized U.S. Treasury fund (BUIDL) and liquid stablecoins. This structure ensures institutional-grade backing and transparent accounting. USDm will initially swap into USDtb rather than provide direct fiat redemption at launch [1]. The integration of USDm into wallets, paymasters, dapps, and onchain services is expected to enhance its utility across the MegaETH ecosystem, with existing stablecoins like USDT0 and cUSD remaining viable options for developers and users [3].

Ethena, known for its third-largest stablecoin USDe with approximately $13 billion in total value locked (TVL), brings significant scale and compliance expertise to the partnership. Its reserve-backed USDtb has around $1.5 billion in circulation and is positioned to comply with the U.S. federal regulatory framework, the GENIUS Act, through collaboration with Anchorage Digital Bank [1]. MegaETH emphasized that the stablecoin model is a step toward more sustainable blockchain operations, particularly in an environment where EIP-4844 is reducing data costs and making fee margins less predictable [3].

The launch of USDm aligns with a broader trend in the crypto industry where ecosystems are developing proprietary stablecoins to reduce reliance on dominant stablecoins like Circle’s USDC and Tether’s USDT. Notable examples include MetaMask and Hyperliquid, both of which are exploring similar initiatives [2]. The stablecoin market, currently valued at over $285 billion, continues to expand, with Tether’s USDT dominating approximately 58% of the market share [3].

MegaETH’s public testnet, launched earlier this year, is operational and features 10ms block times and over 20,000 transactions per second. The network is positioned as a real-time, Ethereum-secured blockchain with a hyper-optimized execution environment, aiming for 100,000 transactions per second while maintaining Ethereum composability [1]. The project has previously demonstrated its scalability, and the introduction of USDm represents another step in its development toward a fully functional, low-fee blockchain infrastructure [2].

Source:

[1] MegaETH launches native USDm stablecoin with Ethena ... (https://www.theblock.co/post/369786/megaeth-usdm-stablecoin)

[2] MegaETH to launch Stablecoin with Ethena to Keep ... (https://www.coindesk.com/business/2025/09/08/megaeth-unveils-native-stablecoin-with-ethena-aiming-to-keep-blockchain-fees-low)

[3] MegaETH Labs Unveils MegaUSD Stablecoin for Real- ... (https://thedefiant.io/news/defi/megaeth-labs-unveils-megausd-stablecoin-for-real-time-apps)