MetaMask Transforms Wallet Into Financial Ecosystem With mUSD

MetaMask, the widely used non-custodial crypto wallet, has announced the launch of its native stablecoin, mUSD, which will be integrated into its platform and the broader decentralized finance (DeFi) ecosystem. The stablecoin, designed to be pegged one-to-one with the U.S. dollar, is expected to be available for on-ramps, swaps, transfers, and cross-chain bridging at launch, with real-world merchant spending capabilities via the MetaMask Card planned for later this year [1]. The token will be issued in collaboration with M^0, a modular Ethereum-centric stablecoin platform, and Bridge, a stablecoin infrastructure company acquired by Stripe earlier this year [2].

The stablecoin’s issuance and operations are supported by strategic partners, including M^0, which will manage the token’s issuance and peg stability, and Bridge, which brings regulatory expertise and payment infrastructure. Additionally, Blackstone has been reported to be involved in overseeing custody and treasury operations, providing institutional credibility and compliance assurance to the project [3]. This collaboration aims to reduce the complexity and time required for launching a stablecoin from “more than a year of complex integrations” to “a matter of weeks,” according to Bridge’s CEO, Zach Abrams [4].

MetaMask’s foray into stablecoin issuance represents a strategic shift toward positioning the platform as a broader financial gateway, moving beyond a simple wallet to include lending, staking, and payments. The stablecoin is expected to enhance user retention by capturing yield generated from its reserve assets, such as short-term U.S. Treasuries. The yield, which has been a significant revenue stream for major stablecoin issuers like Tether, will now be retained within MetaMask’s ecosystem [3]. This move aligns with industry trends where digital wallets are evolving into multi-service financial hubs, offering integrated solutions for users.

The stablecoin market, which has grown to nearly $280 billion, is expected to continue expanding, fueled by recent regulatory developments such as the GENIUS Act, which has brought clearer rules for stablecoin backing, auditing, and oversight [1]. Analysts from major institutions, including Citigroup and Bitwise, have forecasted significant growth in the sector, with Citigroup predicting a $3.7 trillion market size in five years and Bitwise anticipating a $2.5 trillion market in the near term [1]. These projections underscore the potential for mUSD to carve out a meaningful share in the rapidly expanding stablecoin landscape.

MetaMask’s stablecoin initiative is also reflective of a growing trend in the industry where crypto platforms partner with regulated entities to offer customized stablecoins tailored to their user base. M^0 and Bridge have previously worked with other firms, including Slash and World Liberty Financial, to create application-specific stablecoins, suggesting that the infrastructure is scalable and replicable [4]. The partnership aims to streamline the process for other businesses to launch their own stablecoins without managing the complexities of compliance, reserves, and technical infrastructure.

Source:

[1] MetaMask Exec Says Stablecoin Will Also Serve as Revenue Gen (https://www.dlnews.com/articles/defi/metamask-exec-says-stablecoin-will-also-serve-as-revenue-gen/)

[2] MetaMask Debuts mUSD Stablecoin in Collaboration with Bridge (https://thedefiant.io/news/defi/metamask-debuts-musd-stablecoin-in-collaboration-with-bridge)

[3] MetaMask Prepares to Launch New Stablecoin This Week (https://www.cointribune.com/en/metamask-prepares-to-launch-new-stablecoin-this-week/)

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