📍 MetaMask launches mUSD – a wallet that not only holds keys but also retains yield

MetaMask is set to launch a USD-pegged stablecoin called mUSD this week, with deployment expected by the end of August. Backed by Bridge (Stripe) to connect fiat and blockchain, M^0 handles the issuance, while Blackstone manages the treasury and collateral.

Unlike holding USDT/USDC and letting other organizations benefit from the yield, mUSD allows users to mint/redeem directly within the MetaMask wallet. All returns from short-term U.S. Treasury bonds – which are still behind all major stablecoins – now flow directly back to the MetaMask ecosystem.

💭 With mUSD, MetaMask is not just holding users' asset keys – they are also holding the cash flow generated from it. And when wallets become banks, the power dynamics in the stablecoin market will no longer revolve solely around USDT and USDC.