MetaMask’s $mUSD Bridges Web3 and Traditional Finance, Simplifying On-Ramp Friction

MetaMask, the self-custodial crypto wallet developed by Consensys, has announced the launch of its own U.S. dollar-pegged stablecoin, MetaMask USD ($mUSD), marking the first time a self-custodial wallet has issued a native stablecoin [1]. The token is set to debut later in 2025 on the Ethereum and Linea blockchains, with plans to expand its utility across decentralized finance (DeFi) and real-world payments [2]. The stablecoin is backed 1:1 by dollar-equivalent reserves and will be integrated into MetaMask’s wallet, enabling users to engage in fiat on-ramps, token swaps, cross-chain transfers, and future spending via the MetaMask Card at Mastercard-accepting merchants [3].

The development is part of a broader trend in the crypto industry, as more platforms seek to integrate stablecoins into their ecosystems. $mUSD is minted using the decentralized infrastructure of M0, a stablecoin platform designed for application-specific tokens, and issued through Bridge, a Stripe company specializing in stablecoin issuance and regulatory compliance [1]. The collaboration allows MetaMask to leverage a robust technical and compliance framework without building the infrastructure in-house. M0 and Bridge claim the new model accelerates custom stablecoin deployment from over a year to just weeks [3], enabling faster innovation and broader adoption of digital dollar solutions.

The launch of $mUSD coincides with a pivotal regulatory shift in the U.S. market. The recent passage of the GENIUS Act has introduced a federal regulatory framework for payment stablecoins, providing clarity that has spurred activity in the sector [2]. This legislative development is expected to encourage a wave of new stablecoin entrants and enhance compliance across the industry. MetaMask’s product lead, Gal Eldar, emphasized that $mUSD aims to reduce barriers to onboarding in Web3 by simplifying the process of bringing fiat value on-chain and enabling users to deploy and spend digital dollars with minimal friction [2].

$mUSD is designed to be a foundational asset within the growing Linea DeFi ecosystem, which is built on an EVM-equivalent layer-2 network developed by Consensys. As the network expands, the stablecoin will be integrated into lending markets, decentralized exchanges, and custodial platforms, potentially driving increased total value locked (TVL) and transactional activity across the ecosystem [1]. The token’s cross-chain capabilities through M0’s liquidity network further enhance its utility, allowing seamless movement of value between blockchains and increasing its accessibility for developers and end-users alike [3].

For users, $mUSD offers a native, dollar-denominated solution within the MetaMask wallet, aligning with the platform’s mission to simplify the Web3 experience. By providing a stablecoin that is both self-custodial and deeply integrated into the wallet’s features, MetaMask aims to enhance the utility of digital assets while maintaining user control over private keys and funds [1]. This approach contrasts with custodial stablecoins, which require users to trust third parties with their assets.

Industry experts note that the launch of $mUSD reflects the growing convergence between traditional finance and decentralized infrastructure. By combining the regulatory compliance of Bridge, the technical infrastructure of M0, and the user base of MetaMask, the stablecoin is positioned to serve as a bridge between fiat and crypto ecosystems. As more platforms follow similar strategies, the market for digital dollars is expected to continue expanding, with new players like World Liberty Financial and Slash already launching their own stablecoins [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 Joins Stablecoin Race With mUSD, Backed by M0 (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] Crypto Wallet Provider MetaMask to Offer a Stablecoin With Stripe’s Bridge (https://www.bloomberg.com/news/articles/2025-08-21/crypto-wallet-provider-metamask-to-offer-a-stablecoin-with-stripe-s-bridge)