MetaMask Unveils Stablecoin to Bridge Traditional Finance and Web3

MetaMask, the leading self-custodial cryptocurrency wallet, is entering the stablecoin market with the launch of MetaMask USD ($mUSD). Announced in August 2025, the stablecoin is the first of its kind to be launched by a wallet provider and is being issued through Bridge, a Stripe subsidiary, and supported by M0, a decentralized stablecoin infrastructure platform. The $mUSD is designed to enhance the user experience within MetaMask’s ecosystem, offering a seamless, dollar-pegged stablecoin that supports on-ramps, swaps, bridging, and future spending via the MetaMask Card at Mastercard-accepting merchants worldwide.

The stablecoin will be initially available on the Ethereum and Linea blockchains. Linea, a Layer 2 network developed by MetaMask’s parent company, Consensys, is expected to benefit significantly from the integration of $mUSD. The token will serve as a foundational asset for DeFi protocols and lending markets on the platform, enabling users to access deep liquidity and streamline on-chain transactions. As the network expands, $mUSD is planned to be integrated into a range of core DeFi protocols and custodial platforms, further enhancing its utility and reach.

A key innovation of $mUSD is its wallet-native, self-custodial model. Stablecoins have long played a central role in the crypto economy, with nearly $1 trillion in monthly on-chain volume. By embedding the stablecoin directly into MetaMask, the company aims to reduce friction for users who frequently on-ramp, trade, and transact in web3. The integration allows users to access a seamless onboarding experience, bridging the gap between traditional finance and decentralized ecosystems. The model also aligns with MetaMask's broader mission to simplify and enhance the web3 experience, making it more accessible to a growing user base.

The launch of $mUSD is underpinned by Bridge and M0, which together provide a compliant, transparent, and interoperable stablecoin infrastructure. Bridge, a Stripe company, manages the issuance and orchestration of the stablecoin, ensuring compliance with regulatory standards while providing real-time transparency. M0’s decentralized infrastructure supports the token’s cross-chain composability, allowing $mUSD to be used across multiple blockchains. This partnership enables MetaMask to offer a stablecoin that is fully backed by high-quality, liquid dollar equivalents while maintaining a decentralized and extensible architecture.

The timing of the launch coincides with increased regulatory clarity in the U.S., following the passage of the GENIUS Act, which established the first federal framework for regulating payment stablecoins. This legislative development is expected to encourage further innovation in the stablecoin sector, with more firms entering the space to offer tailored stablecoin solutions. MetaMask’s move into the stablecoin market reflects a broader trend in the crypto industry, where major players are leveraging partnerships with traditional financial infrastructure providers to expand their offerings and improve user experiences.

$mUSD is anticipated to launch later in 2025, with technical details and user guides expected to be published in the coming weeks. The stablecoin’s introduction marks a significant step in MetaMask’s strategy to deepen user engagement and reinforce its position as a leading interface between traditional finance and the decentralized web. With the integration of $mUSD into its ecosystem, MetaMask aims to provide users with a robust, flexible, and utility-rich stablecoin that supports both on-chain and real-world transactions.

Source:

[1] MetaMask announces stablecoin, MetaMask USD (https://metamask.io/news/metamask-announces-stablecoin-metamask-usd)

[2] MetaMask crypto wallet plans $mUSD stablecoin with ... (https://www.ledgerinsights.com/metamask-crypto-wallet-plans-musd-stablecoin-with-stripes-bridge-and-m0)

[3] Crypto Wallet Provider MetaMask to Offer a Stablecoin With ... (https://www.bloomberg.com/news/articles/2025-08-21/crypto-wallet-provider-metamask-to-offer-a-stablecoin-with-stripe-s-bridge)