MetaMask, the widely used crypto wallet built by Consensys, announced on Thursday that it is launching its own stablecoin called MetaMask USD (mUSD).
The coin will be issued through Bridge, a stablecoin issuance platform owned by Stripe, and minted using decentralised infrastructure provided by M0.Â
According to MetaMask, mUSD will be backed 1:1 by U.S. cash and short-term Treasuries and will be available later this year on Ethereum and Consensys’s Linea network.
Backed by Dollar Assets
Ajay Mittal, vice president of product strategy at MetaMask, explained that the reserves behind mUSD include highly liquid and reliable dollar-based assets.
These generate yield, and MetaMask will use that yield to improve the user experience across its products. He added that this benefit could lead to lower costs for users and better integration across different services.
MetaMask confirmed that real-time transparency would be maintained for the reserves, while the M0 liquidity network ensures that mUSD can be used across multiple chains.
First Stablecoin by a Self-Custodial Wallet
MetaMask claims mUSD is the first stablecoin to be launched directly by a self-custodial wallet. This positions the token as a default unit of value across the MetaMask ecosystem.
The company believes the real incentive for users to hold mUSD is the improved performance it brings to DeFi activities. These include ramping, bridging, swapping, and spending.
Mittal hinted that additional incentives could be offered later to reward early adopters, though no specific details have been disclosed.
Upcoming Integrations
MetaMask said it plans to roll out deep integrations of mUSD across Linea’s DeFi platforms. These integrations will involve lending markets, decentralised exchanges, and custodial platforms. The goal is to seed liquidity and reduce friction for new users.
At launch, users will be able to on-ramp, store, transfer, and bridge mUSD directly inside the wallet. The company also revealed plans to connect the stablecoin to the MetaMask Card, allowing payments at merchants that accept Mastercard by the end of the year.
A Growing Stablecoin Market
The launch of mUSD comes at a time when stablecoins are seeing unprecedented growth. Monthly on-chain volumes have reached nearly $1 trillion. The timing also aligns with the recent passage of the U.S. GENIUS Act, the first federal law to regulate payment stablecoins.
MetaMask believes that with increasing regulatory clarity, mUSD can play a central role not only in Ethereum’s ecosystem but also in its own Linea network.
With over 100 million users worldwide, MetaMask sees mUSD as a key tool to simplify onboarding and deepen liquidity.
A New Approach to Stablecoin Issuance
Unlike other stablecoins that are created first and then integrated into wallets, MetaMask USD is being built as a native feature of the wallet itself.
This approach, Mittal said, ensures that the token is not only a store of value but also powers critical functions like swapping and spending.
Bridge’s co-founder Zach Abrams said their technology makes it possible to launch stablecoins in weeks instead of years. M0’s co-founder Luca Prosperi emphasised programmability and cross-chain flexibility as central to mUSD’s design.
Although MetaMask has not revealed the exact issuance size or launch date, the company said it is focused on ensuring smooth technical operations. More details, including user guides and technical specifications, will be released in the coming weeks.
Also Read: MetaMask and Stripe Propose Stablecoin ‘MetaMask USD’ To Bridge DeFi And TradFi