Ethereum News Today: MetaMask’s mUSD Aims to Redefine DeFi Wallet Utility

MetaMask, the leading self-custodial crypto wallet developed by Consensys, has announced the launch of MetaMask USD ($mUSD), a new stablecoin designed for integration within its ecosystem and broader DeFi applications. This marks the first time a self-custodial wallet has launched its own stablecoin. $mUSD will be issued by Bridge, a Stripe company, and supported by M0, a decentralized stablecoin infrastructure platform. The token is intended to facilitate seamless on-ramping, cross-chain transactions, and real-world spending, with planned integration via the MetaMask Card at Mastercard-accepting merchants by year-end [1].

The stablecoin will be pegged 1:1 to the U.S. dollar and backed by high-quality, liquid dollar-equivalent reserves. It is built to ensure real-time transparency and cross-chain composability, enabling users to move value between chains without friction. The integration of $mUSD into MetaMask’s wallet experience is expected to enhance the utility of the platform for users who frequently transact, trade, and lend within the DeFi space. The move aligns with the growing adoption of stablecoins, which now account for nearly $1 trillion in monthly on-chain volume [1].

$mUSD is set to launch on Ethereum and Linea, a fully EVM-equivalent Layer 2 blockchain developed by Consensys. This strategic deployment positions the stablecoin to play a foundational role in the expansion of the Linea DeFi ecosystem. By enabling native liquidity provisioning and seamless fiat onboarding, $mUSD is expected to drive sustained growth in total value locked (TVL) and protocol activity across the network [1].

The timing of the launch coincides with increased regulatory clarity in the U.S., particularly with the passage of the GENIUS Act. This act, signed into law by President Donald Trump, provides a federal framework for payment stablecoin regulation, offering a more defined legal environment for stablecoin issuance and usage. MetaMask emphasized that the launch of $mUSD occurs in a regulatory landscape that supports innovation while maintaining compliance and transparency [1].

In a competitive stablecoin market dominated by Tether’s USDT and Circle’s USD Coin (USDC), MetaMask aims to differentiate $mUSD through its deep integration with the MetaMask wallet and its role in the Linea ecosystem. The company plans to incorporate $mUSD into lending markets, decentralized exchanges, and custodial platforms, further expanding its utility. The token will also support basic functions such as on-ramping, holding, swapping, and transferring within the wallet, reducing barriers for new users entering the Web3 space [4].

Gal Eldar, Product Lead at MetaMask, highlighted the importance of $mUSD in lowering onboarding costs and improving the user experience. By enabling users to move money onchain and put it to work in DeFi or real-world transactions, $mUSD aims to simplify the process of engaging with self-custodial wallets. Ajay Mittal, MetaMask’s VP of product strategy, noted that the token’s seamless integration across the MetaMask ecosystem could offer cost, composability, and transactional advantages over other stablecoins [3]. The company has not indicated immediate plans to offer yield on $mUSD deposits but leaves open the possibility of future incentive programs [3].

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

[4] 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)