MetaMask launches the first wallet-native stablecoin, $mUSD, debuting this year on Ethereum and Linea.
The well-known crypto wallet MetaMask officially announced on Thursday (8/22) that it will launch its own stablecoin MetaMask USD ($mUSD), becoming the first self-custodial wallet platform to issue a native stablecoin. This stablecoin will be issued by Bridge, a company under Stripe, and minted using M0's decentralized infrastructure, expected to debut on Ethereum and the Layer 2 network Linea developed by Consensys in 2025.
Source: MetaMask MetaMask announces the launch of its own stablecoin MetaMask USD ($mUSD).
Gal Eldar, MetaMask's product lead, stated: 'MetaMask USD is a key step in bringing the world onto the chain. Through native integration into MetaMask's products, we will be able to break through the most stubborn barriers in Web3, reducing friction and costs for users directly using self-custody wallets.'
$mUSD will be backed by high-quality, highly liquid dollar-equivalent assets at a 1:1 ratio, including US cash and short-term government bonds, ensuring stability and transparency.
Further Reading
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Deeply integrated into the MetaMask ecosystem, supporting cross-chain transactions and DeFi applications.
$mUSD will be deeply integrated into the MetaMask wallet, allowing users to directly perform fiat deposits, token swaps, transfers, and cross-chain operations within the app. This stablecoin is designed for cross-chain use, achieving real-time transparency and cross-chain composability through M0's liquidity network.
MetaMask plans to integrate $mUSD into Linea's DeFi ecosystem, including lending markets, decentralized exchanges, and custody platforms, to increase liquidity and enhance total locked value (TVL).
Ajay Mittal, Vice President of Product Strategy at MetaMask, revealed to the media that the integration of $mUSD will provide users with a more 'unified' experience than competitors, including potentially lower costs, better composability, and a smoother transaction process.
He emphasized: 'Most stablecoins are issued first and then integrated into wallets. MetaMask USD disrupts this model; it has been the native token of MetaMask from day one, serving not only as a value storage tool but also powering every part of the MetaMask experience.'
MetaMask Card combines with the Mastercard network, achieving physical consumption by the end of the year.
MetaMask's most eye-catching plan is to launch the MetaMask Card by the end of the year, allowing users to use $mUSD for daily purchases at millions of Mastercard merchants worldwide. This physical debit card will be supported by Mastercard's technology, effectively bridging cryptocurrency and everyday life. This feature will allow $mUSD to play a role not only in the DeFi field but also to expand into real-world payment scenarios.
Further Reading
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Zach Abrams, co-founder and CEO of Bridge, stated that the company's tools have compressed the stablecoin issuance timeline from 'over a year' to 'a few weeks'.
Luca Prosperi, co-founder and CEO of M0, emphasized that programmability and interoperability are core to the design of $mUSD. This collaborative model allows MetaMask to focus on user experience while outsourcing complex issuance, compliance, and technical infrastructure to professional providers.
Targeting the $285 billion stablecoin market, the (GENIUS Act) provides regulatory clarity.
$mUSD's launch coincides with an improving regulatory environment for stablecoins in the US. President Trump signed the (GENIUS Act) on July 18, establishing the first federal framework for stablecoin payments, clearly defining who can issue stablecoins, how to provide backing, and what disclosure requirements are needed. This legislation provides clearer regulatory guidance for the stablecoin market, aiding the launch of new projects and the expansion of existing ones.
Currently, the global stablecoin market has reached $285 billion, dominated by Tether's $USDT, which accounts for about 60% of the market share, with Circle's $USDC in second place. MetaMask, with its base of over 100 million active users, is expected to carve a niche in this competitive market.
Mittal stated that while $mUSD will not directly provide returns to users at present, this stablecoin may play a role in future incentive programs from MetaMask, attracting holders by improving user experience.
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'MetaMask finally issues a coin! mUSD collaborates with Stripe and Mastercard, what's the next step for card issuance?' This article was first published in 'Crypto City'.
