On September 15, MetaMask introduced mUSD, marking the first stablecoin created by a self-custodial wallet. The token is issued by Bridge, a stablecoin issuance platform owned by Stripe, with support from M0 infrastructure.
According to the official website, mUSD is backed by short-term US Treasury bills held under regulatory oversight. For each token in circulation, there is an equivalent dollar asset in reserve. MetaMask stated that stability is ensured through a 1:1 backing with highly liquid dollar-equivalent instruments, as well as through a transparent reserve structure.
The token was initially launched on the Ethereum mainnet and Linea, an EVM-based Layer 2 network where it plays a key role.
mUSD is integrated into EVM protocols, lending markets, decentralized exchanges, and custodial platforms. It can be used for fiat on-ramping into crypto, trading, exchanging, and other DeFi operations.
In addition, holders can spend mUSD through the MetaMask Card at Mastercard merchant locations worldwide. This makes the coin a bridge between traditional finance and DeFi, simplifying the movement of funds across blockchain ecosystems.
MetaMask positions mUSD as a tool to simplify how users interact with cryptocurrencies, from funding and storing assets to using them in everyday payments.
“Stablecoins of this type play an important role in the DeFi ecosystem, supporting trading, lending, and cross-border transfers,” the project documentation states.
The company announced its plans to issue its own dollar-pegged coin back on August 21.
This post is for informational purposes only and is not advertising or investment advice. Please do your own research before making any decisions.