The MetaMask wallet team has confirmed the release of its own stablecoin, MetaMask USD (mUSD). It will be issued on Bridge, a subsidiary of Stripe, and minted through the decentralized M0 system. According to MetaMask, mUSD will be backed by assets equivalent to the US dollar, with high liquidity and real-time transparency.
Functions and Backing
Ajay Mittal, Vice President of Product Strategy at MetaMask, stated that mUSD will be 100% backed by cash dollars and short-term US Treasury bonds. The yield from these assets will allow MetaMask to improve the user experience, including reducing fees and enabling smoother integration of features.
The project positions mUSD as the first stablecoin issued by a custodial crypto wallet and aims to make it the standard unit of settlement in its ecosystem.
DeFi Integration and User Incentives
The company expects the main motivation for holding mUSD to be an enhanced user experience in decentralized finance: from fiat-to-crypto conversion, bridges, swaps, and payments for goods. According to Mittal, MetaMask may eventually add rewards for early users, though details have not yet been disclosed.
In July, MetaMask announced the launch of stablecoin earnings through Aave.
Launch Date and Ecosystem
The official launch of mUSD is planned for the end of the year. The token will be available on Ethereum and Linea networks from ConsenSys. MetaMask intends to deeply integrate the stablecoin into Linea’s DeFi infrastructure, including lending protocols, decentralized exchanges, and custodial services. This is expected to simplify user access and increase liquidity.
At launch, users will be able to buy, store, swap, transfer, and bridge mUSD directly in MetaMask. Later, the company plans to add the option to spend the token through the MetaMask card anywhere Mastercard is accepted.
What Sets it Apart from Other Projects
Mittal emphasized that, unlike most stablecoins which are issued first and integrated into wallets later, mUSD is being created inside MetaMask from the very beginning. This, he explained, will allow the token to be used at every stage: purchase, exchange, transfers, bridges, and payments.
Zach Abrams, head of Bridge, said that his company’s tools reduce stablecoin launch times from a year to just a few weeks. Luca Prosperi, co-founder of M0, noted that programmability and cross-network compatibility are at the core of mUSD’s architecture.
MetaMask has not disclosed the issuance volume or the exact launch date. Mittal stressed that the company is now focused on security and fine-tuning all processes related to the new asset.
Read Also:
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- Chinese Blockchain Platform Conflux (CFX) to Launch Offshore Yuan-Pegged Stablecoin and Upgrade Network to Version 3.0
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