MetaMask, the self-custodial crypto wallet owned by Consensys, announced on Thursday the launch of a dollar-backed stablecoin named MetaMask USD (mUSD).
MetaMask stated that the stablecoin will be issued by Bridge, a platform for issuing and orchestrating stablecoins, which has been acquired by payments platform Stripe, and will utilize the liquidity platform M0.
MUSD will be integrated into the MetaMask wallet, enabling its use across Web3 applications. MetaMask highlighted that the stablecoin is intended for cross-chain functionality through M0’s liquidity network.
The stablecoin is set to launch later in 2025 on the Ethereum blockchain and the Linea network, a layer-2 solution compatible with Ethereum Virtual Machine (EVM) developed by Consensys.
MetaMask launches the wallet-native stablecoin
The company noted that this stablecoin aims to be significant within the Linea decentralized finance (DeFi) ecosystem.
MetaMask mentioned that the token will be backed by dollar-equivalent reserves at a 1-to-1 ratio and will integrate into wallet functionalities such as swaps, on-ramps, and bridging. Additionally, the company plans to release a MetaMask Card later this year in collaboration with Mastercard, allowing users to use mUSD for everyday spending.
According to MetaMask, a wallet-native, self-custodial stablecoin will improve the experience for users who frequently on-ramp, hold, trade, lend, and spend value through MetaMask. The company claims this “simplifies the Web3 and self-custodial journey.”
Gal Eldar, product lead at MetaMask, stated that the new stablecoin reduces entry barriers for users joining the Web3 ecosystem.
Eldar further explained that it minimizes costs and streamlines the onboarding process. He indicated that the stablecoin will empower users to shift their funds on-chain, invest in DeFi, and use them for daily transactions.
Related: Judge unfreezes $57M in stablecoins linked to Libra token scandal
The GENIUS Act in the United States paves the way for stablecoins
Referencing the recently enacted Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, MetaMask stated that the introduction of mUSD comes amid heightened regulatory clarity.
On July 18, US President Donald Trump signed the GENIUS Act into law, establishing criteria for who can issue stablecoins, how they should be backed, and what disclosures are necessary.
In addition to MetaMask, other entities are entering the stablecoin market. On Thursday, the World Liberty Financial, backed by Trump, issued 9% of its USD1 stablecoin supply, pushing the DeFi company’s assets and stablecoin supply to unprecedented levels.
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