MetaMask will launch its own stablecoin, issued by Bridge, a Stripe company, and based on the decentralized stablecoin infrastructure of M0. The stablecoin mUSD will debut on Ethereum and Linea (a Consensys EVM-equivalent L2).
This move comes after the approval of the GENIUS Act last month, which regulates the stablecoin industry. MetaMask stated that the stablecoin will be fully integrated into its wallet, allowing for direct access, swaps, transfers, and bridges across multiple blockchains. Based on values like USDT and USDC, mUSD will serve as a neutral and highly liquid asset, backed by high-liquidity dollar-equivalent assets at a 1:1 ratio.
By the end of the year, MetaMask aims to ensure that mUSD holders can spend their tokens through the MetaMask Card at millions of Mastercard merchants worldwide. This will facilitate product integration and benefit acquisition for users.
Additionally, Gal Eldar, product lead of MetaMask, described the launch as a significant step forward for self-custody adoption, as stated in the official announcement. Eldar claimed:
"MetaMask USD is a crucial step towards integrating the world into blockchain. By being natively integrated into MetaMask's product offering, it will allow us to overcome some of the most persistent barriers of web3 and reduce both friction and costs for those onboarding directly to a self-custody wallet."
The launch of MetaMask's mUSD coincides with the ongoing expansion of the stablecoin market, with a total market capitalization exceeding $278.21 billion, according to DefiLlama. With this launch, the cryptocurrency wallet platform aims to compete with established stablecoins like USDT, which has a 60% market share, as well as Circle's USDC, which holds the second-largest market share.
Regulators are also showing increased interest in the stablecoin sector. The approval of the GENIUS Act in the U.S. created the first federal framework for payment stablecoins, providing issuers with clearer standards. The Federal Reserve also recently indicated that stablecoins could improve the efficiency of the payment system by reducing risks and settlement costs.
Outside the U.S., governments are exploring initiatives. Reports indicate that China is considering a yuan-backed stablecoin, as previously reported. This highlights the growing competition among countries and platforms for market share.
MetaMask's entry into the stablecoin sector demonstrates that the market is no longer the exclusive domain of exchanges and fintech companies. Wallet-native stablecoins like mUSD could also transform how people hold and spend in Web3 and beyond.
