Ethereum News Today: MetaMask Launches mUSD to Bridge Web3 and Everyday Finance

MetaMask, the widely used self-custodial crypto wallet developed by Consensys, is set to debut its native stablecoin, MetaMask USD (mUSD), later in 2025. This initiative is part of an expanding trend in the stablecoin market, which is now valued at over $250 billion. The mUSD stablecoin will be issued by Bridge, a platform recently acquired by Stripe, and will be backed by M0’s blockchain infrastructure. The token is designed to facilitate seamless cross-chain transactions and will be integrated into the MetaMask wallet, enabling functionalities such as on-ramps, swaps, and bridging across multiple blockchains [1].

The launch of mUSD will occur on the Ethereum blockchain and the Linea network, which is an Ethereum Virtual Machine (EVM)-equivalent layer-2 blockchain developed by Consensys. This move is aligned with increased regulatory clarity in the U.S., marked by the enactment of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The legislation, signed by President Donald Trump, sets new federal standards for stablecoin issuers and has spurred growth in the sector [1]. Gal Eldar, MetaMask’s product lead, emphasized the significance of the mUSD, stating that it aims to reduce barriers for users entering the Web3 space and simplify the onboarding process.

MetaMask’s strategy involves leveraging its existing user base of over 100 million to integrate mUSD into its ecosystem, potentially offering lower costs and smoother transaction experiences. Ajay Mittal, MetaMask’s VP of product strategy, highlighted that the stablecoin is expected to serve as a connective liquidity layer within the wallet’s ecosystem and across DeFi platforms. The company also plans to launch a MetaMask Card in partnership with Mastercard, allowing users to spend mUSD at millions of merchants globally by the end of the year [2]. This integration is seen as a step toward expanding the practical utility of stablecoins beyond the DeFi space into everyday transactions.

The mUSD stablecoin will be fully integrated with the MetaMask DeFi ecosystem, enhancing liquidity for users engaging in lending markets, decentralized exchanges, and custodial platforms. The token will be backed 1:1 with dollar-equivalent reserves and will be available in-wallet on Ethereum and Linea [2]. While MetaMask currently does not plan to offer yield on mUSD deposits, the token could play a role in future incentive programs within the platform. The launch of mUSD is part of a broader trend where payment platforms and crypto wallets are creating their own branded dollar tokens to meet the growing demand for stable, liquid assets in the digital economy.

The introduction of mUSD comes at a time when the stablecoin market is experiencing heightened competition. Tether’s USDT and Circle’s USDC dominate the market with significant shares, but new entrants like mUSD are seeking to carve out a niche by leveraging integration with existing user ecosystems and infrastructure. The GENIUS Act has provided a regulatory framework that supports innovation in the stablecoin sector, encouraging new players to enter the market with confidence. As more platforms seek to launch their own stablecoins, the competition is expected to drive improvements in usability, security, and accessibility for end users [3].

Source:

[1] MetaMaskMetaMask introduces the wallet-native stablecoin (https://cointelegraph.com/news/metamask-musd-stablecoin-launch-ethereum-linea-2025)

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

[3] MetaMask Joins Stablecoin Race With Launch Of mUSD (https://stocktwits.com/news-articles/markets/cryptocurrency/meta-mask-joins-stablecoin-race-with-launch-of-m-usd/chsSvzNRdie)