Ethereum News Today: MetaMask's mUSD Aims to Bridge DeFi and Everyday Finance

MetaMask, the world’s leading self-custodial crypto wallet, has announced the launch of its own stablecoin, MetaMask USD ($mUSD), marking the first instance of a self-custodial wallet issuing a native stablecoin. The stablecoin, backed 1:1 by dollar-equivalent assets and issued by Bridge, a Stripe company, is designed to streamline crypto transactions and facilitate broader adoption of decentralized finance (DeFi) and real-world payments. M0, a decentralized stablecoin infrastructure provider, powers the technical backbone of $mUSD, ensuring interoperability and composability across chains.

The launch of $mUSD aligns with increasing regulatory clarity in the U.S. following the passage of the GENIUS Act, which establishes federal standards for stablecoin issuers. This act, signed into law by President Donald Trump, requires stablecoins to be fully backed by high-quality reserves and introduces transparency measures for the industry. The new stablecoin is expected to launch on the Ethereum and Linea blockchains later in 2025, with Linea—a layer-2 network developed by MetaMask’s parent company, Consensys—playing a pivotal role in its integration within the DeFi ecosystem.

MetaMask’s product lead, Gal Eldar, emphasized that the stablecoin is a key step toward mass adoption of Web3, reducing friction and costs for users entering the self-custodial space. By integrating $mUSD into the MetaMask wallet, users will be able to perform on-ramps, swaps, and bridging across multiple blockchains, while also accessing real-world spending via the MetaMask Card—a Mastercard-powered debit card expected to support $mUSD transactions at millions of merchants globally by the end of the year. This dual functionality aims to blend the utility of DeFi with everyday usability, enabling users to hold, trade, and spend digital dollars in a seamless experience.

The issuance of $mUSD is part of a growing trend of custom stablecoin development, with platforms leveraging third-party infrastructure to manage compliance, reserves, and technical complexity. Bridge, now part of Stripe, has significantly reduced the time and effort required to launch a stablecoin, moving the process from over a year of integrations to a matter of weeks. This enables platforms like MetaMask to focus on user experience while ensuring regulatory compliance and asset-backed stability. M0’s co-founder and CEO, Luca Prosperi, highlighted that this partnership allows builders to customize their digital dollar stack, optimize for liquidity, and maintain full control over issuance options without the need for in-house infrastructure.

MetaMask’s Vice President of Product Strategy, Ajay Mittal, stated that the deep integration of $mUSD across the MetaMask ecosystem offers distinct advantages over other stablecoins, including lower costs, greater composability, and smoother transaction flows. The company aims for $mUSD to serve as a core liquidity layer not only within its own services but also across the broader DeFi landscape. By enabling users to deploy $mUSD into DeFi protocols, lending markets, and decentralized exchanges, MetaMask hopes to drive increased total value locked (TVL) and protocol activity across its supported networks.

The strategic move into stablecoin issuance also reflects Stripe’s expanding role in the crypto ecosystem. The payment giant, through its Bridge platform, has supported the issuance of digital dollars for other major players, including PayPal and World Liberty Financial. With the growing adoption of digital currencies and the regulatory green light provided by the U.S. government, MetaMask’s $mUSD is positioned to become a key player in the evolving stablecoin market. As the second half of 2025 approaches, the launch of $mUSD could represent a turning point in how users interact with crypto, bridging the gap between decentralized finance and everyday financial activities.

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 Unveils mUSD Stablecoin on Ethereum and Linea ... (https://finance.yahoo.com/news/metamask-unveils-musd-stablecoin-ethereum-120103482.html) [5] MetaMask to Launch Stripe-Issued mUSD Stablecoin on ... (https://thedefiant.io/news/defi/metamask-to-launch-stripe-issued-musd-stablecoin-on-ethereum-linea-cca11178) [6] MetaMask Unveils mUSD Stablecoin on Ethereum and ... (https://decrypt.co/336147/metamask-unveils-musd-stablecoin-ethereum-linea-teases-debit-functionality) [7] What to Know About MetaMask's Upcoming mUSD Coin (https://coinpaper.com/10658/meta-mask-launches-its-own-stablecoin-here-s-what-it-means-for-crypto-users)