MetaMask Redefines Wallet-Integrated Finance with mUSD Stablecoin Launch

MetaMask, the world’s leading self-custodial crypto wallet developed by Consensys, has announced the launch of MetaMask USD ($mUSD), a native stablecoin designed to enhance user experience across its ecosystem. This marks the first time a self-custodial wallet has issued its own stablecoin, introducing a new model that integrates stablecoin utility directly into the wallet. The token, which will be fully backed 1:1 by high-quality dollar-equivalent reserves, is expected to debut later in 2025 on Ethereum and Linea, a Consensys-developed layer-2 network. The launch aligns with growing regulatory clarity in the U.S., particularly after the passage of the GENIUS Act, which provides a federal framework for stablecoin issuance.

$mUSD is being developed in collaboration with Bridge, a Stripe company, and M0, a decentralized stablecoin infrastructure platform. Bridge handles the regulatory compliance and reserve management, while M0 provides the blockchain infrastructure for cross-chain liquidity and interoperability. This partnership enables MetaMask to offer a stablecoin with real-time transparency and seamless integration across dapps, DeFi protocols, and payment systems. The token will initially support on-ramping, swapping, bridging, and will soon be usable for spending via the MetaMask Card at millions of Mastercard merchants.

The stablecoin is intended to serve as a neutral, liquid asset within the MetaMask ecosystem, enabling users to transition between fiat and crypto with minimal friction. It is expected to play a foundational role in the Linea DeFi ecosystem, with plans for deeper integration across lending markets, decentralized exchanges, and custodial platforms. This move is seen as a strategic step to bolster liquidity and user activity on the Linea network. By offering native liquidity and onboarding capabilities, $mUSD aims to support sustained growth in total value locked (TVL) and protocol usage.

MetaMask Product Lead Gal Eldar emphasized that $mUSD will reduce barriers to entry in the Web3 space by simplifying onboarding and lowering costs. The stablecoin allows users to bring their money onchain, put it to work in DeFi, and spend it in everyday transactions. This approach aligns with MetaMask’s vision of making web3 accessible and intuitive for a broader audience.

The broader stablecoin market has seen increased activity, with the GENIUS Act providing a regulatory boost for issuers. The act has enabled more players to enter the space, including World Liberty Financial, which recently minted 9% of its USD1 stablecoin supply. Other examples include BitGo's USD1 and PayPal's PYUSD, both backed by different infrastructure partners. The trend of application-specific stablecoins is gaining traction, particularly in crypto wallets and DeFi protocols that seek to offer branded digital dollars without managing the complexities of issuance and compliance.

According to Zach Abrams, CEO of Bridge, the partnership with M0 has streamlined the issuance process, reducing the time to launch a custom stablecoin from over a year to weeks. This efficiency enables platforms like MetaMask to realize benefits more rapidly, accelerating the deployment of user-centric financial tools in the web3 space. With the launch of $mUSD, MetaMask aims to reinforce its position as a key infrastructure player in the decentralized economy, offering a seamless, dollar-denominated stablecoin experience for its millions of users.

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