Ethereum News Today: MetaMask to Launch mUSD Stablecoin by End of August 2025 with Institutional Backing

MetaMask, one of the most widely used Ethereum wallets with over 30 million active monthly users, is preparing to launch its first U.S. dollar-pegged stablecoin, mUSD, by the end of August 2025. The token is part of the company’s broader strategy to expand its role in the decentralized finance (DeFi) ecosystem and increase its participation in the growing stablecoin market [2]. The stablecoin is expected to be officially revealed in mid-August, with a full rollout planned for the end of the month [2].

To support the launch, MetaMask has partnered with Bridge, a payments facilitator acquired by Stripe, and the stablecoin issuance protocol M^0. These partners will play key roles in the development and issuance of mUSD. Additionally, Blackstone, a major alternative asset manager, will provide custody and treasury management services for the stablecoin, further reinforcing the credibility and institutional backing of the project [1].

Alongside the mUSD launch, MetaMask is expanding its fiat off-ramp services to support 10 additional blockchain networks, including Arbitrum, Avalanche C-Chain, Base, and BNB Chain. Users will initially be able to off-ramp ETH from Ethereum and Optimism, BNB, and Polygon tokens, with more assets to be added over time. This expansion aims to improve the user experience by making it easier to convert digital assets into traditional currencies [2].

The development of mUSD aligns with broader trends in the crypto industry toward regulated stablecoin issuance and institutional collaboration. As stablecoins continue to play a central role in cross-chain transactions, liquidity provision, and DeFi applications, MetaMask’s entry into the market positions it to capture a share of the value generated from stablecoin reserves. The company’s strategic move also signals its ambition to offer more integrated financial solutions, leveraging its existing user base and infrastructure [3].

The mUSD stablecoin is expected to serve as a medium of exchange within MetaMask’s ecosystem, enabling faster, lower-cost transactions compared to volatile crypto assets. With institutional partners such as Bridge and Blackstone involved, the token could gain traction among both retail and institutional users. However, its success will depend on factors including regulatory acceptance, user adoption, and the token’s integration with existing DeFi protocols and Web3 applications [1].

As the launch date approaches, further details on the governance model, redemption mechanisms, and compliance structure of mUSD are anticipated. The stablecoin is being developed under the new U.S. stablecoin regulatory framework, emphasizing MetaMask’s commitment to compliance and transparency [2].

Source:

[1] MetaMask readies mUSD stablecoin for late August launch (https://cryptobriefing.com/metamask-musd-stablecoin-stripe-blackstone/)

[2] MetaMask Prepares to Launch mUSD Stablecoin by End of ... (https://blockonomi.com/metamask-prepares-to-launch-musd-stablecoin-by-end-of-august-2025/)

[3] Ethereum News Today: MetaMask to Launch mUSD ... (https://www.ainvest.com/news/ethereum-news-today-metamask-launch-musd-stablecoin-month-institutional-partners-2508/)