Ethereum News Today: MetaMask Launches mUSD Stablecoin to Challenge USDT and USDC

The cryptocurrency market is preparing for a significant development as MetaMask, one of the most popular Ethereum-based cryptocurrency wallets, is expected to announce its new US dollar-pegged stablecoin, mUSD, this week. According to sources familiar with the project, the token is set for launch by the end of the month [4]. This move represents a strategic expansion for MetaMask, which has over 30 million monthly active users and has become a cornerstone of the Ethereum ecosystem.

The stablecoin will be supported by Bridge and its stablecoin issuance protocol, M^0. Bridge, acquired by fintech company Stripe earlier this year, specializes in payment infrastructure for stablecoins. Additionally, Blackstone, a major player in traditional finance, will be responsible for custody and treasury management of mUSD, adding a layer of institutional credibility to the project [4].

MetaMask’s stablecoin ambitions were recently revealed when a governance proposal was accidentally published and quickly removed from its platform. The announcement of mUSD is seen as a direct challenge to existing stablecoins like Tether’s USDT and Circle’s USDC, both of which dominate the market. By entering this space, MetaMask aims to diversify its offerings and capture a share of the returns generated by stablecoin reserves, typically derived from short-term, liquid assets such as U.S. Treasury bonds [4].

The timing of the announcement coincides with a broader shift in the crypto market, with Ethereum and top-tier altcoins outperforming Bitcoin. Ethereum has recently surged past the $4,500 mark and is nearing its all-time high, signaling a potential altcoin season [2]. Analysts have noted that capital is rotating from Bitcoin’s dominance to Ethereum and other major altcoins, driven by increased institutional interest and macroeconomic factors [5]. In the last 24 hours, $116 billion in capital flowed into the token market, further supporting this narrative [2].

The anticipated launch of mUSD could add to the momentum, introducing additional liquidity into the market and potentially attracting both institutional and retail investors looking for stable-yield options. As stablecoins play an increasingly important role in the crypto ecosystem, MetaMask’s move could influence the broader altcoin landscape, especially as other major players continue to innovate.

The market is also closely monitoring how top altcoins perform in the wake of recent macroeconomic developments. For instance, Ethereum’s recent breakout above $4,400 and Bitcoin’s retesting of the $120,000 level have sparked speculation about further price appreciation, particularly in the context of the upcoming U.S. CPI data [6]. This environment is boosting investor interest in altcoins with strong fundamentals and active development ecosystems.

Overall, the convergence of MetaMask’s stablecoin launch and the growing strength of Ethereum and altcoins signals a potential new phase of growth and diversification in the crypto market. As mUSD moves closer to launch, market participants will be watching closely to see how it integrates into the broader financial landscape and whether it can establish itself as a major player in the stablecoin space.

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Sources:

[1] FBS reports altcoin market entering next growth phase (https://www.fxstreet.com/press-releases/fbs-reports-altcoin-market-entering-next-growth-phase-202508121301)

[2] Ethereum price Rose 7% As $116B Entered Token Market ... (https://www.thecoinrepublic.com/2025/08/13/ethereum-price-rose-7-as-116b-entered-token-market-in-24-hours/)

[4] Anticipated Altcoin Approaching: Announcement Expected Any Moment Now – Here Are the Details (https://en.bitcoinsistemi.com/anticipated-altcoin-approaching-announcement-expected-any-moment-now-here-are-the-details/)

[5] The Next Crypto Bull Run? Gemini Predicts ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1031178-20250812)

[6] Top 3 cryptocurrencies to watch post US CPI data release (https://www.fxstreet.com/cryptocurrencies/news/top-3-cryptocurrencies-to-watch-post-us-cpi-data-release-202508121655)