according to materials from the site - By Marketbit.io
On August 21, 2025, MetaMask introduced its own stablecoin mUSD, available on Ethereum platforms and Consensys's Layer-2 Linea. This is the first integration of a stablecoin with a self-custodial wallet.
mUSD aims to enhance operations and payments in the DeFi space, reaching over 100 million users while signaling MetaMask's innovative advancement in the stablecoin market.
This is the first case of integrating a proprietary stablecoin with a self-custodial wallet like MetaMask. Bridge (a company owned by Stripe) plays a key role in this initiative by issuing mUSD and utilizing the M0 infrastructure.
Financial markets will closely monitor the movement of liquidity from well-known stablecoins such as USDT and USDC to mUSD. This integration is expected to boost activity on the Ethereum and Linea networks. mUSD complies with the stringent requirements of the GENIUS Act, supported by the U.S., which ensures regulated issuance of stablecoins managed by Stripe’s Bridge. This law requires reserves in the form of cash and U.S. Treasury securities, maintaining a 1:1 parity.
Historically, the issuance of fiat-backed stablecoins by companies like PayPal and Circle has led to increased activity in the DeFi space. The new launch could replicate a similar effect by leveraging MetaMask's existing infrastructure.
Market experts anticipate significant changes on DeFi platforms, particularly regarding governance tokens such as Aave, Curve, and Uniswap. The partnership with M0 provides a robust infrastructure for decentralized liquidity and cross-chain transactions.
