Ethereum News Today: MetaMask Built a Stablecoin to Redefine Crypto's Money Layer

MetaMask, the leading crypto wallet developed by Consensys, is set to launch its native stablecoin, MetaMask USD (mUSD), on the Ethereum and Linea blockchains later this year. This move marks the first time a self-custodial wallet has issued its own stablecoin, positioning mUSD as a central component of the MetaMask ecosystem and broader decentralized finance (DeFi) landscape. The stablecoin will be issued by Bridge, a stablecoin issuance platform owned by payment giant Stripe, and will be minted via M0’s decentralized infrastructure. It will be fully backed by U.S. cash and short-duration Treasuries, with real-time transparency ensured through M0’s liquidity network [1].

Ajay Mittal, MetaMask’s VP of product strategy, emphasized that the integration of mUSD within MetaMask will offer users a more cohesive and cost-effective experience. Unlike traditional stablecoins that are issued first and later integrated into wallets, mUSD is being designed from the ground up to power every aspect of the MetaMask experience—from on-ramping, swapping, and bridging to spending. The company also highlighted the potential for lower transaction costs and smoother flows, as well as greater composability across the DeFi stack [5]. By leveraging M0’s infrastructure, mUSD will benefit from cross-chain capabilities and real-time yield generation from its reserve assets [3].

The launch of mUSD aligns with the broader trend of stablecoin growth, which has seen the sector reach nearly $1 trillion in monthly onchain volume. The recent passage of the U.S. GENIUS Act has provided regulatory clarity and encouraged new entrants into the market. MetaMask’s move comes as industry leaders like Tether and Circle continue to dominate the space, with Tether alone generating nearly $5 billion in net profits in its most recent quarter. However, MetaMask aims to differentiate itself by making mUSD the default liquidity unit across its ecosystem. The stablecoin will be available for on-ramping into the cryptoverse, swaps, transfers, and bridging across chains, with plans to expand its use as a payment method via the MetaMask Card—accepted at Mastercard-accepting merchants—by the end of the year [2].

From a financial perspective, mUSD will also serve as a revenue generator for MetaMask. The yield generated from the stablecoin’s dollar-equivalent assets will partially support the platform’s operations, helping fund ongoing improvements and the development of new features for users. Mittal noted that while mUSD will not directly offer yield to users at launch, it could play a role in future incentive programs, potentially enhancing user adoption and retention. The strategic partnership with Bridge and M0 enables MetaMask to streamline the issuance process, with stablecoin deployment timelines reduced from “more than a year” to just weeks [5]. This speed and flexibility are crucial in a rapidly evolving market where first-mover advantage and regulatory compliance are key factors for success.

Industry analysts anticipate continued growth in the stablecoin market, with some forecasts predicting a valuation of up to $2.5 trillion in the near future [2]. MetaMask’s launch of mUSD, supported by Stripe’s compliance infrastructure and M0’s onchain capabilities, positions the company to capitalize on this expansion. By embedding the stablecoin directly into its 100 million+ user base and integrating it across lending platforms, decentralized exchanges, and custodial services, MetaMask aims to reduce onboarding friction and enhance the user experience. This strategy aligns with broader DeFi trends emphasizing composability and seamless asset interoperability [3].

Source:

[1] MetaMask Unveils mUSD Stablecoin on Ethereum and Linea ... (https://finance.yahoo.com/news/metamask-unveils-musd-stablecoin-ethereum-120103482.html)

[2] MetaMask's stablecoin play to double as a revenue generator ... (https://www.dlnews.com/articles/defi/metamask-exec-says-stablecoin-will-also-serve-as-revenue-gen/)

[3] Crypto Wallet Provider MetaMask to Offer a Stablecoin With ... (https://www.bloomberg.com/news/articles/2025-08-21/crypto-wallet-provider-metamask-to-offer-a-stablecoin-with-stripe-s-bridge)

[4] Meta USD (MUSD) Price Today, News & Live Chart (https://www.forbes.com/digital-assets/assets/meta-usd-musd/)

[5] MetaMask set to launch mUSD stablecoin on Ethereum ... (https://www.theblock.co/post/367713/metamask-musd-stablecoin-ethereum-linea-stripe-bridge)