MetaMask enters with mUSD, development cycle only weeks long—stablecoins enter high-speed expansion phase
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MetaMask enters with mUSD, development cycle only weeks long—stablecoins enter high-speed expansion phase
Compiled by: Felix, PANews Last week, a governance proposal outlining MetaMask's stablecoin mUSD was briefly posted and then removed, sparking market speculation about mUSD's development. The stablecoin's release has now been confirmed. On August 21, MetaMask, the cryptocurrency wallet developed by Consensys, announced the launch of its native U.S. dollar-denominated stablecoin, MetaMask USD ($mUSD), marking the first time a self-custodial wallet has launched its own stablecoin. mUSD is expected to launch later this year.
Navigating Web3 tides with focused insightsCompiled by: Felix, PANews
Last week, a governance proposal outlining MetaMask's stablecoin mUSD was briefly published and then removed, sparking market speculation about the development of mUSD. The stablecoin's release has now been confirmed.
MetaMask, the cryptocurrency wallet developed by Consensys, announced on August 21 that it will launch its native U.S. dollar-pegged stablecoin, MetaMask USD ($mUSD), marking the first time a self-custodial wallet has introduced its own stablecoin. mUSD is expected to launch later this year, initially debuting on Ethereum and Linea.
Built on Bridge and M0, to integrate with Mastercard by year-end
mUSD is built by Bridge, a stablecoin issuance company under Stripe, and supported by M0’s decentralized infrastructure.
Bridge is a stablecoin orchestration and issuance platform under Stripe, providing compliant licensing, monitoring, and rigorous reserve management for custom-issued stablecoins. The underlying M0 protocol is used by Bridge to mint $mUSD, offering a decentralized and scalable stablecoin infrastructure platform built specifically for interoperability, composability, and transparency.
According to MetaMask, mUSD will be fully backed 1:1 by "high-quality, highly liquid U.S. dollar-equivalent assets," including U.S. cash and short-term U.S. Treasury securities, with real-time transparency and cross-chain composability. mUSD is set to launch later this year on Ethereum and Consensys’ Linea network, with deep integration into Linea’s DeFi stack, gradually expanding across lending markets, DEXs, and custodial platforms to boost liquidity and reduce user onboarding friction.
mUSD will primarily be used in two ways:
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At launch within the wallet: for seamless on-ramping, swapping, transferring, and cross-chain bridging.
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Expected by end of year in real-world use: allowing users to spend mUSD via the MetaMask card at millions of merchants accepting Mastercard.
Regarding whether customers will receive rewards for holding mUSD, Ajay Mittal, MetaMask’s Vice President of Product Strategy, emphasized: "Currently, mUSD will not offer direct yield to users. However, mUSD may play a role in future incentive programs from MetaMask."
No specific launch date or planned issuance scale has been disclosed, but further technical details and user guides will be released in the coming weeks.
Development cycle shortened to weeks as stablecoins enter high-speed expansion phase
The launch of mUSD comes amid monthly on-chain transaction volumes for stablecoins surpassing nearly $1 trillion, and coincides with the passage of the U.S. GENIUS Act.
Previously, Federal Reserve Governor Christopher Waller delivered a speech supporting cryptocurrencies, highlighting the role of stablecoins and noting their potential to maintain and extend the U.S. dollar’s global dominance. Meanwhile, Wyoming officially launched its Frontier Stable Token (FRNT), becoming the first U.S. state to issue its own stablecoin.
With the digital dollar market flourishing and regulatory clarity improving, the concept of application-specific stablecoins is gaining increasing attention. Payment apps, crypto wallets, or DeFi protocols can now launch their own stablecoins while outsourcing compliance, reserves, and infrastructure to third-party providers.
For example, Paxos issued PayPal’s PYUSD token, while BitGo supports USD1, the stablecoin linked to Trump-affiliated DeFi protocol World Liberty Financial. Earlier this month, U.S. fintech company Slash partnered with Bridge to launch its own stablecoin.
MetaMask’s stablecoin represents the first joint case between M0 and Bridge. Through this collaboration, MetaMask can provide its users with built-in digital dollars without having to manage complex issuance, compliance, and technical processes.
Zach Abrams, co-founder and CEO of Bridge, said they have reduced the development time for customized stablecoin issuance from "over a year of complex integration" down to "weeks." This means applications like MetaMask "can achieve monetization faster and more efficiently than ever before."
Through this partnership, M0 and Bridge aim to replicate MetaMask’s token development success with more issuers.
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