Ethereum News Today: MetaMask Embeds Stablecoin Muscle Into Web3 Ecosystem

MetaMask has announced the launch of its stablecoin, MetaMask USD ($mUSD), marking a significant step in the evolution of digital currency integration within its self-custodial wallet ecosystem. The stablecoin, issued by Bridge—a Stripe subsidiary—and powered by M0’s decentralized infrastructure, is designed to provide seamless, dollar-denominated value transfer across decentralized applications (dapps) and decentralized finance (DeFi) protocols. The initiative reflects MetaMask’s strategy to deepen user engagement by reducing onboarding friction and enhancing the utility of stablecoins in both on-chain and real-world transactions.

According to MetaMask, $mUSD will be fully backed 1:1 by high-quality, highly liquid dollar-equivalent assets, ensuring transparency and stability. It will initially be launched on Ethereum and Linea, an Ethereum Virtual Machine (EVM)-compatible layer-2 network developed by Consensys. The token is expected to serve as a foundational asset in the growing DeFi ecosystem on Linea, facilitating lending, trading, and liquidity provisioning for users. Ajay Mittal, vice president of product strategy at MetaMask, noted that the stablecoin is not merely a store of value but a tool designed to "power every part of the MetaMask experience," from on-ramping to bridging and spending.

The launch of $mUSD aligns with the broader regulatory clarity introduced in the U.S. through the GENIUS Act, a legislative measure signed by President Donald Trump in July 2025. The act provides a federal framework for stablecoin issuance and reserves management, offering legal certainty to platforms like MetaMask. The timing of the launch also coincides with a surge in stablecoin usage, with the sector processing nearly $1 trillion in monthly on-chain volume. As such, $mUSD is positioned to compete in a $277 billion market, with analysts forecasting it to grow to $2 trillion by 2028 [5].

MetaMask’s collaboration with Bridge and M0 highlights the platform’s commitment to leveraging specialized infrastructure to streamline stablecoin issuance. Prior to the launch, the development process for custom stablecoins typically required over a year of complex integrations; however, Bridge’s platform has reduced this to a matter of weeks, enabling faster deployment and greater flexibility for developers and end-users alike. Zach Abrams, co-founder and CEO of Bridge, emphasized the benefits of this streamlined approach, noting that it allows platforms like MetaMask to realize financial and functional advantages "more rapidly and efficiently than ever before."

Users will initially be able to engage with $mUSD through MetaMask’s wallet features, including on-ramps, token swaps, cross-chain bridging, and transfers. Looking ahead, the stablecoin is set to be integrated into the MetaMask Card, a Mastercard-enabled spending solution that will allow users to transact with $mUSD at millions of merchants worldwide. Gal Eldar, product lead at MetaMask, stated that the integration "cuts through some of the most stubborn barriers in web3," reducing both friction and costs for users entering the decentralized space.

The broader implications of MetaMask’s entry into the stablecoin market could influence the trajectory of DeFi adoption. By enabling native liquidity provisioning and seamless fiat onboarding, $mUSD is expected to drive total value locked (TVL) growth and protocol activity on Linea and other supported blockchains. This move also signals a shift in stablecoin design, where wallet-native, self-custodial assets are being developed to serve as foundational units within a larger financial infrastructure. As M0 CEO Luca Prosperi noted, the M0-Bridge integration provides builders with the "best stablecoin stack and the most robust issuance capabilities," enabling greater interoperability and programmability for future innovations.

Source:

[1] MetaMask announces stablecoin, MetaMask USD (https://metamask.io/news/metamask-announces-stablecoin-metamask-usd)

[2] MetaMask to roll out wallet-native mUSD dollar stablecoin (https://cointelegraph.com/news/metamask-musd-stablecoin-launch-ethereum-linea-2025)

[3] MetaMask Joins Stablecoin Race With mUSD, Backed by ... (https://www.coindesk.com/business/2025/08/20/stripe-s-bridge-teams-up-with-m0-protocol-to-issue-stablecoins-starting-with-metamask-s-musd)

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

[5] MetaMask to launch mUSD stablecoin in partnership with ... (https://www.fxstreet.com/cryptocurrencies/news/metamask-to-launch-musd-stablecoin-in-partnership-with-stripes-bridge-202508211916)

[6] MetaMask crypto wallet plans $mUSD stablecoin with ... (https://www.ledgerinsights.com/metamask-crypto-wallet-plans-musd-stablecoin-with-stripes-bridge-and-m0/)