MetaMask, the self-custodial crypto pockets owned by Consensys, mentioned Thursday it is going to launch a dollar-backed stablecoin referred to as MetaMask USD (mUSD).
MetaMask mentioned on Thursday that the stablecoin shall be issued by Bridge, an issuance and orchestration platform for stablecoins, which was acquired by the funds platform Stripe, and be powered by the liquidity platform M0.
MUSD shall be built-in into the MetaMask pockets, permitting customers to make use of the stablecoin throughout Web3 functions. MetaMask mentioned the stablecoin is designed for crosschain use by means of M0’s liquidity community.
The stablecoin will debut later in 2025 on the Ethereum blockchain and the Linea community, an Ethereum Digital Machine (EVM) equal layer-2 bootstrapped by Consensys.
MetaMask introduces the wallet-native stablecoin
The corporate mentioned the stablecoin is positioned to play a significant position in Linea’s decentralized finance (DeFi) ecosystem.
MetaMask mentioned the token shall be backed 1-to-1 with dollar-equivalent reserves and built-in into pockets options together with swaps, on-ramps and bridging. The corporate additionally plans to launch a MetaMask Card later this 12 months in partnership with Mastercard, enabling customers to spend mUSD in on a regular basis transactions.
MetaMask mentioned {that a} wallet-native, self-custodial stablecoin will improve the expertise of customers who frequently on-ramp, maintain, commerce, lend and spend worth utilizing MetaMask. The corporate mentioned this “simplifies the Web3 and self-custodial journey.”
Gal Eldar, product lead at MetaMask, mentioned the brand new stablecoin lowers limitations for customers coming into the Web3 area.
Eldar mentioned it reduces the prices and simplifies the onboarding course of. He mentioned the stablecoin will permit customers to maneuver their funds onchain, deploy it into DeFi and spend in on a regular basis transactions.
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United States’ GENIUS Act paves the best way for stablecoins
Citing the not too long ago signed Guiding and Establishing Nationwide Innovation for US Stablecoins (GENIUS) Act, MetaMask mentioned that the introduction of the mUSD stablecoin comes amid elevated regulatory readability.
On July 18, US President Donald Trump signed the GENIUS Act into legislation, setting necessities on who can problem stablecoins, how they have to be backed and what disclosures are required.
Aside from MetaMask, different gamers have jumped into the stablecoin race. On Thursday, the Trump-backed World Liberty Monetary minted 9% of its USD1 stablecoin provide. This pushed the DeFi firm’s holdings and stablecoin provide to report highs.
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