MetaMask Proposes New Stablecoin mmUSD With Stripe Partnership

MetaMask is reportedly planning to launch a new USD-backed stablecoin called mmUSD, with a potential partnership with Stripe to manage the fiat backing and regulatory compliance. This initiative, revealed through a governance proposal within the MetaMask community, aims to build a decentralized stablecoin that operates on the M⁰ network for issuance and settlement [1]. Stripe is positioned as the issuing partner, offering trusted infrastructure to support the stablecoin’s regulatory framework [1].

The proposed mmUSD would be integrated into MetaMask’s ecosystem, serving as a base currency for users engaging with decentralized finance (DeFi) protocols such as Aave for lending and yield generation [1]. With over 30 million monthly active users, MetaMask is leveraging its large user base to challenge existing stablecoins like USDC and USDT [1]. This move aligns with the broader trend of increased corporate interest in stablecoin adoption, spurred by recent regulatory developments such as the GENIUS Act, which provides a federal regulatory framework for stablecoin issuance [1].

The governance proposal has not yet been officially confirmed by MetaMask or Stripe, and key details about the reserve model and compliance requirements remain unaddressed. In fact, the original governance post has been made private, raising questions about the transparency and finality of the plan [1]. Despite this, the proposal reflects an ongoing push by major players in finance and technology to integrate stablecoins into mainstream financial systems. Companies like Western Union, Remitly, and Interactive Brokers have already begun exploring stablecoin integrations for cross-border payments and other services [1].

MetaMask’s move comes amid a rapidly growing stablecoin market that now exceeds $250 billion in total value locked. Ripple CEO Brad Garlinghouse has projected that the sector could expand to $1-2 trillion in the next few years, highlighting the transformative potential of stablecoins in global finance [1]. Federal Reserve Governor Christopher Waller has also emphasized the role of stablecoins in maintaining the U.S. dollar’s position as the world’s reserve currency by making it more accessible through digital means [1].

The proposed mmUSD would also benefit from Stripe’s infrastructure, which has already been used by companies like Remitly to integrate stablecoin payouts into their operations [1]. Stripe’s Bridge service, a platform for digital asset processing, is expected to play a key role in supporting mmUSD’s launch and operations [1].

Despite regulatory clarity from the GENIUS Act, some companies such as Coinbase and PayPal continue to offer stablecoin yield programs, even though the legislation explicitly bans such incentives from direct stablecoin issuers. Both companies argue that they are not direct issuers but rather intermediaries, allowing them to operate within the legal boundaries [1]. For instance, Coinbase offers 4.1% APY on USDC holdings, while PayPal provides 3.7% on PYUSD, both through third-party issuers like Paxos [1].

Senator Elizabeth Warren has raised concerns about the risks associated with private stablecoin issuance, warning of potential privacy invasions and systemic financial instability. However, major corporations including Amazon, Walmart, JD.com, and Alipay continue to explore stablecoin integrations, indicating a strong industry interest in the technology [1].

MetaMask’s proposed entry into the stablecoin market represents a significant development in the ongoing competition among platforms to dominate digital finance. By combining its massive user base with Stripe’s compliance infrastructure, MetaMask aims to position mmUSD as a viable alternative to existing stablecoins while tapping into the growing demand for decentralized financial tools [1].

Source: [1] [MetaMask Plans USD Stablecoin Launch with Stripe Partnership, Governance Proposal Reveals](https://cryptonews.com/news/metamask-plans-usd-stablecoin-launch-with-stripe-partnership-governance-proposal-reveals/)