Summary
- MetaMask has introduced its native stablecoin, mUSD, developed in partnership with Stripe’s subsidiary, Bridge, and fully backed by assets equivalent to the dollar.
- The stablecoin will be embedded within the MetaMask ecosystem, initially launching on Ethereum and Linea, and later serve as a payment option for the Mastercard-backed MetaMask debit card.
- MetaMask’s leadership envisions mUSD as a foundational liquidity layer not only for its users but across the DeFi landscape, capitalizing on the wallet’s inherent advantages for crypto enthusiasts.
On Wednesday, MetaMask officially announced the launch of its first-ever native stablecoin, marking a significant milestone for self-custodial wallets.
The token, named mUSD, will be seamlessly integrated within the MetaMask DeFi ecosystem, enabling users of the popular Ethereum wallet to easily convert self-custodied cryptocurrencies into dollar-pegged tokens.
This stablecoin will be issued by Bridge, a subsidiary of Stripe, and will be fully backed by dollar-equivalent assets in accordance with the recent GENIUS Act.
Upon its anticipated launch later this year, mUSD will be accessible within the wallet on both Ethereum and Linea, the layer-2 blockchain created by Consensys, the parent company of MetaMask. (Note: Consensys is one of the 22 investors in Decrypt, which maintains editorial independence.)
By year-end, MetaMask aims to enable mUSD for use with its physical debit card, which operates through Mastercard.
As Decrypt reported last week, MetaMask’s entry into the stablecoin market puts the wallet provider in competition with a growing array of players eager to take advantage of the newly approved sector. However, the company’s leaders are optimistic that mUSD will thrive due to MetaMask’s existing audience of millions of active crypto traders.
Ajay Mittal, MetaMask’s VP of product strategy, shared with Decrypt that mUSD’s comprehensive integration into the MetaMask ecosystem will provide various advantages over competitors that have more fragmented user experiences. These benefits might include lower costs, improved composability, and streamlined transaction processes, he explained.
Mittal emphasized that, from MetaMask’s viewpoint, the aim is for mUSD to evolve into the key liquidity layer not only within the wallet’s ecosystem but across the entire DeFi space.
Similar to other stablecoins designed for payment providers, mUSD is notably issued by Stripe, a third-party entity, rather than MetaMask itself. The GENIUS Act, recently signed into law by President Donald Trump, restricts stablecoin issuers from enabling customers to earn rewards or interest on their deposits, but does not prevent other companies from doing so.
This critical distinction in legislation, which has met strong opposition from the banking lobby, has allowed firms such as PayPal and Coinbase to provide attractive returns to customers holding stablecoins—even those issued under their names. These companies contend that offering substantial annual rates on stablecoin deposits, typically between 3% and 5%, is vital for attracting users.
When inquired about the possibility of offering rewards on mUSD deposits, Mittal replied, “Currently, mUSD will not provide yield directly to users. However, it may participate in future incentive programs within the MetaMask platform.”
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