Deng Tong, Jinse Finance
On August 21, 2025, MetaMask officially announced the launch of its native stablecoin, MetaMask USD (mUSD). MetaMask stated that mUSD would be issued by Bridge, a stablecoin issuance platform under Stripe, and minted through the decentralized infrastructure of M0.
What are the core pieces of information about MetaMask USD (mUSD) that are worth noting? What has driven the emergence of mUSD? What is the new paradigm for stablecoin issuance in the future?
I. Quick Overview of Core Information about mUSD
MetaMask USD is issued by Bridge, a stablecoin issuance and orchestration platform under Stripe, and is supported by the decentralized stablecoin infrastructure and liquidity platform M0.
mUSD will be deeply integrated into the MetaMask wallet, providing users with a seamless, USD-denominated stablecoin experience for holding, spending, and trading in web3. MetaMask USD is designed for composable cross-chain use through the M0 liquidity network, setting a new standard for stablecoin utility from dapps to DeFi and payment sectors within the MetaMask ecosystem. mUSD is a neutral, high-liquidity asset that enables seamless 1:1 fiat-to-crypto access for certain payment methods, unlocking a range of upcoming product integrations and user benefits.
MetaMask USD will initially launch on Ethereum and Linea. MetaMask plans to deeply integrate with Linea's DeFi stack, covering lending markets, decentralized exchanges, and custody platforms to inject liquidity and reduce user onboarding friction. After launch, users will be able to deposit, hold, exchange, transfer, and bridge mUSD within MetaMask. As the network develops, mUSD will integrate into various core protocols, including lending markets, decentralized exchanges, and custody platforms, thereby releasing deep liquidity and utility for users. By achieving native liquidity supply and seamless fiat access, mUSD will help drive the continuous growth of Linea's TVL and protocol activity.
MetaMask USD introduces an unprecedented model: a self-custodial, wallet-native stablecoin available for millions of MetaMask users across multiple blockchains. It will enhance the experience for users who frequently make deposits, hold, trade, lend, and spend directly in the MetaMask wallet. This innovation simplifies the processes of web3 and self-custody while unlocking the native utility of DeFi and real-world payments. MetaMask also plans to enable the MetaMask card spending feature at merchants accepting Mastercard by the end of the year.
II. What has driven the emergence of mUSD?
1. US Stablecoin Regulatory Bill Passed
On July 18, Trump signed the (GENIUS Act), which stipulates who can issue stablecoins, how stablecoins should be supported, and what information needs to be disclosed. Since the introduction of the bill, the heat in the stablecoin sector has been rising. For leading platforms like MetaMask, clear regulation means that stablecoins can be integrated into core business through compliance paths, without worrying about the impact of policy risks. At this time, MetaMask launched mUSD, enabling it to move forward better on the compliance track and quickly expand the market leveraging the industry dividends brought by the policy.
2. Changes in Stablecoin Demand
As the industry continues to develop, the structural demand in the stablecoin market is undergoing dramatic changes. As crypto assets gradually shift from speculative tools to practical mediums, user demand for stablecoins has extended from mere trading hedges to scenarios such as everyday payments, cross-border settlements, and DeFi.
David Duong, head of research at Coinbase, has predicted that by 2028, the market capitalization of stablecoins will reach $1.2 trillion; US Treasury Secretary Janet Yellen expects the stablecoin market size to reach $2 trillion and become a key buyer of US Treasuries; the July minutes released by the Federal Reserve also mentioned that with the passage of the (GENIUS Act), the use of payment stablecoins may increase, which could enhance the efficiency of payment systems and may also increase demand for the underlying assets (including US Treasuries).
The entry of mUSD at this time seems to have a momentum to carve a piece of the stablecoin blue ocean, and with MetaMask's existing strength, mUSD is not difficult to expand its territory in the stablecoin market.
3. MetaMask Business Expansion
Since its launch in 2016, MetaMask has been favored by users. Especially after 2023, MetaMask has entered a period of deep optimization. That year, MetaMask launched the Snaps feature, allowing developers to extend wallet functionalities to non-EVM blockchains, significantly enriching the wallet's capabilities. In 2024, MetaMask partnered with Mastercard and Baanx to launch the MetaMask card, a physical debit card allowing users to spend cryptocurrencies directly from their MetaMask wallets at any location accepting Mastercard, greatly promoting the application of cryptocurrencies in real-world consumption scenarios.
MetaMask's series of actions have long proven that it is not satisfied with merely being a storage wallet but is expanding its business into transactions, payments, applications, and more. mUSD perfectly enables a one-stop service experience—users can directly exchange fiat for mUSD within MetaMask using the fiat channel provided by Stripe Bridge, and the exchanged funds can participate conveniently in various operations such as DeFi trading and cross-chain transfers without leaving the wallet ecosystem. The launch of mUSD is an important step in MetaMask's business expansion and transformation, which will continue to support the prosperous development of the MetaMask ecosystem.
III. New Paradigm of Customized Stablecoin Issuance
MetaMask's stablecoin is the first demonstration case of M0 collaborating with Bridge to help enterprises launch customized USD stablecoins. This collaboration combines Bridge's expertise in regulatory and reserve management with M0's blockchain infrastructure designed specifically for application-based stablecoins.
By collaborating with M0 and Bridge, MetaMask can provide its users with a built-in USD stablecoin without managing the complexities of issuance, compliance, and technical architecture.
Zach Abrams, co-founder and CEO of Bridge, stated that they have shortened the development time for customized stablecoin issuance from 'over a year of complex integration' to 'a matter of weeks.' This means that applications like MetaMask 'can achieve yields faster and more efficiently than ever before.'
Through this collaboration, M0 and Bridge are seeking to replicate their experience on MetaMask tokens with more issuers.
"Luca Prosperi, founder and CEO of M0, stated: 'Applications want to control their dollar infrastructure, and importantly, they do not need to build that infrastructure themselves.'"
IV. How Industry Insiders View the Release of mUSD
Ajay Mittal, Vice President of Product Strategy at MetaMask, stated: “MetaMask USD is fully backed by US cash and short-term US Treasury bonds that generate yields. MetaMask benefits from this yield, which in turn enables us to improve the user experience across the stack—from potentially lower costs to more seamless integration.” “We believe that the best incentive mechanism for holding mUSD is that it can provide a better experience for DeFi—from issuance, bridging to exchange and spending. Over time, we may introduce additional incentives to reward early users.”
Gal Eldar, Product Manager at MetaMask, pointed out: "MetaMask USD is a key step in bringing the world on-chain. With MetaMask USD, users can bring funds on-chain for use, spend almost anywhere, and use it like currency. It will help us break down some of the most stubborn barriers in Web3, reducing friction and costs for users entering self-custody wallets directly.”
Luca Prosperi, co-founder and CEO of M0, stated: “We aim to empower builders of excellent crypto products to truly control the digital dollar stack they use, thus providing the best end-user experience. Current stablecoin technology does not meet this requirement. The advantage of products like MetaMask lies in their ability to customize stablecoin technology, have options for issuance, and optimize interoperability and liquidity. The M0-Bridge integration will provide builders with the best stablecoin stack and the most powerful issuance capability.”
V. Summary
According to data from DefiLlama, the value of stablecoins has swollen to over $278 billion this year. Industry analysts expect this figure to continue growing with the introduction of US stablecoin legislation. Matt Hogan, Chief Investment Officer at Bitwise, stated in May: “I expect this to soon become a $2.5 trillion market.” In April of this year, analysts at Citigroup predicted that the value of the stablecoin market could reach $3.7 trillion within five years.
The prosperity of the stablecoin market reflects the overarching trend of the integration of traditional finance and crypto assets. mUSD is not only the result of MetaMask's product innovation but also an inevitable product of the development of the crypto ecosystem to a certain stage. With favorable factors such as the regulatory compliance of Bridge, the technological infrastructure of M0, and the existing user base of MetaMask, mUSD may have the capability to reshape the landscape of the stablecoin market, completely breaking down the barriers between the crypto asset and traditional finance worlds, holding half of the stablecoin market.