Ethereum News Today: MetaMask Redefines On-Ramp with Wallet-First Stablecoin Era

MetaMask, the world’s leading self-custodial cryptocurrency wallet, announced the launch of MetaMask USD ($mUSD), a wallet-native stablecoin, marking the first instance of a self-custodial wallet issuing its own stablecoin. Developed in collaboration with Bridge, a Stripe company, and M0, a decentralized stablecoin infrastructure platform, $mUSD is designed to provide seamless on-ramping, swapping, bridging, and, by the end of 2025, real-world spending via the MetaMask Card at Mastercard-accepting merchants globally. The stablecoin will be issued at a 1:1 ratio with high-quality dollar-equivalent assets, with real-time transparency and full compliance with U.S. regulatory frameworks [1].

The stablecoin’s initial deployment on Ethereum and Linea, a layer-2 blockchain developed by Consensys, positions it to play a pivotal role in expanding the DeFi ecosystem on Linea. As the network grows, $mUSD is expected to be integrated into core DeFi protocols, including decentralized exchanges, lending platforms, and custodial services, enhancing liquidity and utility for users. The integration of $mUSD into the MetaMask wallet ecosystem is intended to streamline the user experience for individuals who engage in on-ramping, trading, lending, and transacting within the web3 space [1].

The launch of $mUSD comes amid a broader shift in the stablecoin market, which now accounts for nearly $1 trillion in monthly on-chain volume. As the U.S. continues to establish regulatory clarity with the passage of the GENIUS Act—the first federal framework for regulating payment stablecoins—MetaMask’s move reflects a broader trend of financial institutions and crypto platforms aligning with new legal requirements. The Act introduces specific prohibitions on stablecoin deposits generating yield, a regulatory stance that has influenced the design of $mUSD, which will not initially offer direct yield to users [3].

According to Gal Eldar, Product Lead at MetaMask, the launch of $mUSD is a foundational step in simplifying the web3 onboarding experience while enhancing the utility of self-custodial wallets. “With MetaMask USD, users can bring their money onchain, put it to work, spend it almost anywhere, and use it like money should be used,” he stated [1]. The company aims to eliminate friction and reduce costs for users transitioning into the self-custodial model, a key challenge in mainstream crypto adoption.

The partnership between MetaMask, Bridge, and M0 is centered on creating a stablecoin infrastructure that is both compliant and flexible for application-specific use cases. Bridge, now part of Stripe, brings regulatory expertise and compliance infrastructure, while M0 provides a decentralized platform for issuing and managing stablecoins. Together, they enable MetaMask to rapidly deploy a stablecoin that can be used across multiple chains and integrated into the broader DeFi landscape. According to Zach Abrams, co-founder and CEO of Bridge, this collaboration has drastically reduced the development time for custom stablecoin issuance, from over a year to just weeks [1].

While MetaMask has not announced plans to offer direct yield on $mUSD deposits, the stablecoin could play a role in future incentive programs within the MetaMask ecosystem. The company emphasized that the primary goal of $mUSD is to serve as a neutral, highly liquid asset that facilitates cross-chain interactions and expands the utility of stablecoins within DeFi and real-world applications. The integration of $mUSD into the MetaMask Card by year-end is expected to further drive adoption and real-world usage [3].

Source:

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

[2] MetaMask crypto wallet plans $mUSD stablecoin with ... (https://www.ledgerinsights.com/metamask-crypto-wallet-plans-musd-stablecoin-with-stripes-bridge-and-m0/)

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

[4] Stablecoin News: Stripe's Bridge Teams Up With M0 for ... (https://www.coindesk.com/business/2025/08/20/stripe-s-bridge-teams-up-with-m0-protocol-to-issue-stablecoins-starting-with-metamask-s-musd)

[5] MetaMask to debut wallet-native stablecoin mUSD on ... (https://cryptobriefing.com/metamask-usd-stablecoin-launch/)