Ethereum News Today: MetaMask’s mUSD Bridges Web3 and Real-World Finance

MetaMask, the leading self-custodial cryptocurrency wallet developed by Consensys, is launching MetaMask USD (mUSD), its first native stablecoin, marking a significant expansion into the growing stablecoin market. mUSD is designed to be fully integrated into MetaMask’s ecosystem, enabling users to seamlessly convert, hold, trade, and spend dollar-pegged tokens across decentralized finance (DeFi) platforms and real-world transactions. The stablecoin will be issued by Bridge, a Stripe company, and underpinned by M0’s decentralized infrastructure, ensuring 1:1 backing by high-quality dollar-equivalent assets [1].

The launch of mUSD comes amid heightened regulatory clarity in the U.S., following the passage of the GENIUS Act, which established the first federal framework for payment stablecoins. This legislative development has created a more favorable environment for stablecoin innovation, reducing the time and complexity required to issue such tokens. According to Zach Abrams, co-founder and CEO of Bridge, the platform has reduced the issuance timeline for custom stablecoins from over a year to a matter of weeks, enabling platforms like MetaMask to deploy stablecoin solutions rapidly and efficiently [2].

Initially, mUSD will be available on the Ethereum and Linea blockchains, with the latter being a layer-2 network developed by Consensys. The stablecoin is expected to play a foundational role in the Linea DeFi ecosystem, facilitating deeper liquidity and integration with lending platforms, decentralized exchanges, and custodial services. MetaMask anticipates that mUSD will enhance total value locked (TVL) and protocol activity across the network, particularly as it enables seamless onboarding of fiat into crypto and cross-chain composability via M0’s liquidity network [3].

In addition to on-chain utility, MetaMask plans to enable mUSD to be used as a payment method through the MetaMask Card, which operates on the Mastercard network. This feature will allow users to spend their stablecoins at millions of global merchants, further bridging the gap between web3 and traditional finance. Ajay Mittal, MetaMask’s VP of product strategy, emphasized that the stablecoin’s integration across the MetaMask ecosystem offers advantages over fragmented user experiences seen in other stablecoin offerings, including potentially lower costs, greater composability, and smoother transaction flows [4].

MetaMask’s entry into the stablecoin sector underscores the growing competition in the $250 billion digital dollar market, which is dominated by tokens like Tether’s USDT and Circle’s USDC. With a user base of millions, MetaMask aims to leverage its native integration to capture a significant portion of this market. Gal Eldar, MetaMask’s Product Lead, stated that the stablecoin is a critical step in reducing barriers to entry for web3 users, simplifying onboarding and enabling users to deploy their funds into DeFi or use them in everyday transactions [5].

The launch of mUSD also highlights the broader trend of application-specific stablecoins, where platforms outsource compliance, reserve management, and infrastructure to specialized providers. For example, M0 and Bridge’s collaboration allows businesses to issue custom digital dollars without the complexities of building infrastructure in-house. Luca Prosperi, CEO of M0, noted that the partnership enables developers to build safe, programmable, and interoperable digital dollars, providing flexibility in issuance and optimization for liquidity and composability [6].

Source:

[1] MetaMask announces stablecoin, MetaMask USD (https://metamask.io/news/metamask-announces-stablecoin-metamask-usd)

[2] 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)

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

[4] MetaMask to roll out wallet-native mUSD dollar stablecoin (https://cointelegraph.com/news/metamask-musd-stablecoin-launch-ethereum-linea-2025)

[5] MetaMask enters stablecoin scene with mUSD launch on ... (https://cryptoslate.com/metamask-enters-stablecoin-scene-with-musd-launch-on-ethereum-and-linea/)

[6] Joseph Lubin's MetaMask Unveils mUSD as Stablecoin ... (https://coingape.com/joseph-lubins-metamask-unveils-musd-as-stablecoin-market-heats-up/)