MetaMask Redefines DeFi with First Self-Custodial Stablecoin mUSD

MetaMask, the leading self-custodial crypto wallet developed by Consensys, has entered the stablecoin market with the launch of MetaMask USD (mUSD), marking the first time a self-custodial wallet has issued its own stablecoin. The stablecoin, backed 1:1 by U.S. cash and short-term Treasuries, is issued by Bridge, a Stripe company specializing in stablecoin issuance and orchestration, and powered by M0, a decentralized stablecoin infrastructure and liquidity platform [1]. The integration of mUSD into the MetaMask wallet ecosystem aims to simplify user experiences by enabling on-ramps, swaps, transfers, and cross-chain bridging [2]. The stablecoin is initially being launched on Ethereum and Linea, a fully EVM-equivalent layer-2 network developed by Consensys, where it is expected to play a foundational role in the expanding DeFi ecosystem [3].

The introduction of mUSD aligns with the broader trend of stablecoin adoption and comes amid regulatory clarity in the U.S. provided by the recently enacted GENIUS Act, which establishes a federal framework for payment stablecoin regulation [4]. The act, signed into law by U.S. President Donald Trump, sets requirements for stablecoin issuers regarding reserves, compliance, and transparency, creating a more structured environment for market participants [5]. MetaMask's stablecoin is being positioned as a tool to facilitate the transition between traditional and decentralized finance by providing a neutral, highly liquid asset that can be used across multiple blockchains [6].

The technical infrastructure of mUSD combines Bridge's regulatory compliance and reserve management capabilities with M0’s blockchain infrastructure, enabling seamless cross-chain composability and transparency [1]. This collaboration is expected to streamline the issuance of application-specific stablecoins for businesses, reducing the time required from over a year to just weeks [3]. The partnership highlights a growing trend in the market, where payment platforms, wallets, and DeFi protocols are outsourcing the complex aspects of stablecoin issuance, compliance, and infrastructure to specialized providers [6]. For MetaMask, this integration allows the company to offer a built-in stablecoin without managing the underlying complexities of compliance and technology [4].

In addition to DeFi applications, mUSD will soon be spendable via the MetaMask Card at millions of Mastercard merchants worldwide [2]. This move bridges the gap between crypto and everyday transactions, enabling users to spend mUSD in real-world settings while retaining the benefits of a self-custodial wallet [1]. The MetaMask Card is expected to enhance the utility of mUSD and support its broader adoption as a medium of exchange for daily use [4]. The launch of mUSD also represents a significant step toward reducing onboarding friction and costs for new users entering the Web3 space [2].

The entry of MetaMask into the stablecoin market comes at a time when the sector has grown into a $250 billion market, driven by demand for faster, cheaper international payments and decentralized financial services [6]. The stablecoin’s integration with DeFi platforms, lending markets, and decentralized exchanges is expected to unlock deeper liquidity and utility for MetaMask users [1]. With its U.S. Treasury-backed reserves and compliance framework, mUSD is positioned to compete with other major stablecoins like Tether and USD Coin while catering to users who prefer a self-custodial model [4]. The broader implications of mUSD’s launch suggest that stablecoins will continue to play a pivotal role in the evolution of the crypto ecosystem, particularly as regulatory clarity and infrastructure improve [5].

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 ... (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] MetaMask Partners With Stripe to Launch Dollar-Backed ... (https://yellow.com/news/metamask-partners-with-stripe-to-launch-dollar-backed-stablecoin-for-100-million-users)

[5] MetaMask Introduces Its Own Stablecoin, mUSD, Powered ... (https://intellectia.ai/news/crypto/metamask-launches-its-own-stablecoin-musd-issued-by-bridge)

[6] MetaMask Joins Stablecoin Race With mUSD, Backed by M0 ... (https://finance.yahoo.com/news/metamask-joins-stablecoin-race-musd-120020569.html)