MetaMask has launched a new stablecoin, MetaMask USD ($mUSD), marking the first time a self-custodial wallet has issued its own native stablecoin. The stablecoin is designed to integrate seamlessly into MetaMask’s ecosystem, offering users a dollar-denominated token for holding, transacting, and spending across decentralized finance (DeFi) platforms and real-world applications [1]. Developed in collaboration with Bridge, a Stripe company, and powered by M0’s decentralized stablecoin infrastructure, $mUSD is backed 1:1 by high-quality dollar-equivalent reserves, ensuring transparency and compliance [2]. This integration supports a range of functionalities, including on-ramps, swaps, bridging, and future integration with the MetaMask Card, which will allow users to spend the stablecoin at millions of Mastercard-accepting merchants by the end of 2025 [3].

The launch of $mUSD is positioned to deepen liquidity and utility within the DeFi space, particularly on Ethereum and Linea, the Ethereum Virtual Machine (EVM)-equivalent layer-2 blockchain developed by Consensys [4]. MetaMask expects the stablecoin to play a foundational role in the Linea DeFi ecosystem, where it will be used across lending markets, decentralized exchanges, and custodial platforms. Ajay Mittal, VP of product strategy at MetaMask, highlighted that the stablecoin’s native integration into the wallet will offer users advantages such as lower transaction costs and smoother cross-chain transfers compared to existing stablecoins [5]. The platform aims to leverage $mUSD as a bridge between traditional and decentralized finance, streamlining onboarding and reducing friction for new users entering the web3 space [1].

Regulatory clarity in the U.S. has been a critical enabler for the launch. The passage of the GENIUS Act, which established the first federal regulatory framework for payment stablecoins, has provided the legal foundation for $mUSD’s issuance [6]. This development aligns with broader industry trends, as stablecoins have become a cornerstone of the crypto economy, supporting nearly $1 trillion in monthly on-chain volume [7]. MetaMask’s entry into the stablecoin market comes amid growing competition from major players such as Tether and Circle, who dominate the sector with their widely used tokens, USDT and USDC. However, MetaMask aims to differentiate itself through its native wallet integration and the potential for expanded utility across DeFi protocols and real-world spending [8].

The technical infrastructure underpinning $mUSD is designed to support scalability and interoperability. Bridge, as the issuing platform, handles compliance, reserve management, and transaction monitoring, while M0 provides the liquidity and composability features that enable seamless cross-chain use. This collaboration allows MetaMask to offer a stablecoin that is both compliant and user-friendly, addressing concerns around transparency and security in the stablecoin space [1]. The platform also plans to release more technical details and user guides in the coming weeks, further enhancing accessibility for its 100 million global users [7].

Looking ahead, the introduction of $mUSD is expected to drive further adoption of stablecoins in both DeFi and traditional finance. By the end of 2025, users will be able to spend the stablecoin through the MetaMask Card, bridging the gap between on-chain and off-chain transactions [6]. Gal Eldar, Product Lead at MetaMask, emphasized that the stablecoin is a critical step in bringing the world “onchain,” enabling users to hold, earn, and spend digital value without sacrificing control or convenience [8]. With the support of M0 and Bridge, MetaMask aims to build a stablecoin that not only meets regulatory standards but also enhances the user experience across its ecosystem.

Source: [1] MetaMask announces stablecoin, MetaMask USD (https://metamask.io/news/metamask-announces-stablecoin-metamask-usd) [2] MetaMask to roll out wallet-native mUSD dollar stablecoin (https://cointelegraph.com/news/metamask-musd-stablecoin-launch-ethereum-linea-2025)

[3] MetaMask Unveils mUSD Stablecoin on Ethereum and Linea … (https://finance.yahoo.com/news/metamask-unveils-musd-stablecoin-ethereum-120103482.html) [4] MetaMask Joins Stablecoin Race With Launch Of mUSD (https://stocktwits.com/news-articles/markets/cryptocurrency/meta-mask-joins-stablecoin-race-with-launch-of-m-usd/chsSvzNRdie) [5] MetaMask Partners With Stripe to Launch Dollar-Backed … (https://yellow.com/news/metamask-partners-with-stripe-to-launch-dollar-backed-stablecoin-for-100-million-users) [6] MetaMask Introduces Its Own Stablecoin, mUSD, Powered … (https://intellectia.ai/news/crypto/metamask-launches-its-own-stablecoin-musd-issued-by-bridge) [7] MetaMask’s native mUSD stablecoin expected to launch on … (https://www.mitrade.com/insights/news/live-news/article-3-1059195-20250821) [8] What is MetaMask USD (mUSD) and What Does it Mean … (https://www.onesafe.io/blog/metamask-usd-impact-stablecoin-integration)