Deng Tong, Jinse Finance
On August 21, 2025, MetaMask announced the official launch of its native stablecoin, MetaMask USD (mUSD). MetaMask stated that mUSD will be issued by Bridge, Stripe's stablecoin issuance platform, and minted through M0's decentralized infrastructure.
What are the key takeaways from MetaMask USD (mUSD)? What drove the launch of mUSD? What will be the new paradigm for stablecoin issuance in the future?
MetaMask USD is issued by Bridge, Stripe's stablecoin issuance and orchestration platform, and is powered by M0, a decentralized stablecoin infrastructure and liquidity platform.
mUSD will be deeply integrated into the MetaMask wallet, providing users with a seamless, USD-denominated stablecoin experience for holding, spending, and trading on web3. Designed for composable cross-chain usage through the M0 liquidity network, MetaMask USD sets a new standard for stablecoin utility in the MetaMask ecosystem, from dapps to DeFi and payments. mUSD is a neutral, highly liquid asset that enables seamless 1:1 fiat-to-cryptocurrency integration for certain payment methods, unlocking a range of upcoming product integrations and user benefits.
MetaMask USD will initially be available on Ethereum and Linea. MetaMask plans to deeply integrate with Linea's DeFi stack, spanning lending markets, decentralized exchanges, and custody platforms, to inject liquidity and reduce user onboarding friction. Upon launch, users will be able to deposit, hold, redeem, transfer, and bridge mUSD within MetaMask. As the network grows, mUSD will be integrated into core protocols, including lending markets, decentralized exchanges, and custody platforms, unlocking deep liquidity and utility for users. By enabling native liquidity provision and seamless fiat access, mUSD will help drive continued growth in Linea's TVL and protocol activity. MetaMask USD introduces an unprecedented model: a self-custodial, wallet-native stablecoin accessible to MetaMask's millions of users across multiple blockchains. It will enhance the experience for users who frequently deposit, hold, trade, borrow, and spend directly within their MetaMask wallets. This innovation simplifies web3 and self-custody while unlocking the inherent utility of DeFi and real-world payments. MetaMask also plans to enable MetaMask card spending at merchants accepting Mastercard by the end of the year.
On July 18th, Trump signed the GENIUS Act, which regulates who can issue stablecoins, how they are backed, and what information must be disclosed. Since its introduction, the stablecoin market has become increasingly popular. For leading platforms like MetaMask, regulatory clarity means they can integrate stablecoins into their core business through a compliant path without worrying about policy risks. Launching mUSD at this time allows MetaMask to better navigate the regulatory landscape and rapidly expand into the market, leveraging the industry dividends brought about by the policy.
As the industry continues to develop, the structural demand in the stablecoin market is undergoing dramatic changes. As crypto assets gradually transition from speculative tools to practical media, user demand for stablecoins has expanded from simple trading hedging to encompass everyday payments, cross-border settlements, and DeFi. Coinbase Head of Research David Duong predicted that the stablecoin market will reach $1.2 trillion by 2028. US Treasury Secretary Jeff Bessant projected the stablecoin market would reach $2 trillion and become a key buyer of US Treasury bonds. The Federal Reserve's July meeting minutes also noted that with the passage of the GENIUS Act, the use of payment stablecoins is likely to increase. Payment stablecoins can help improve the efficiency of the payment system and potentially increase demand for the assets backing them (including US Treasury bonds). mUSD's entry into the market at this time suggests it is poised to capture a share of the vast stablecoin market. Leveraging MetaMask's established capabilities, mUSD will undoubtedly expand its presence in the stablecoin market.
Since its launch in 2016, MetaMask has been a popular platform for users. Since 2023, MetaMask has entered a period of deep optimization. That year, MetaMask launched the Snaps feature, allowing developers to extend wallet functionality to non-EVM blockchains, significantly enriching the wallet's functionality. In 2024, MetaMask partnered with Mastercard and Baanx to launch the MetaMask Card, a physical debit card that allows users to directly use the cryptocurrency in their MetaMask wallets at any location that accepts Mastercard, significantly promoting the adoption of cryptocurrency in real-world, everyday consumer scenarios.
MetaMask's series of initiatives have long demonstrated that it is not content with simply being a storage wallet, but is expanding its business into transactions, payments, and applications. mUSD offers a one-stop shop experience—users can convert fiat to mUSD directly within MetaMask using Stripe Bridge's fiat onramp. The converted funds can then be easily used for DeFi transactions, cross-chain transfers, and other operations without leaving the wallet ecosystem. The launch of mUSD is a significant step in MetaMask's business expansion and transformation, and will continue to fuel the prosperity of the MetaMask ecosystem.
MetaMask's stablecoin is the first example of M0 collaborating with Bridge to help businesses launch custom USD stablecoins. This partnership combines Bridge's expertise in regulatory oversight and reserve management with M0's blockchain infrastructure designed specifically for application-based stablecoins.
Through this collaboration with M0 and Bridge, MetaMask can provide its users with a built-in USD stablecoin without having to manage the complexities of issuance, compliance, and technical infrastructure. Bridge co-founder and CEO Zach Abrams said they have reduced the development time for custom stablecoin issuance from "over a year of complex integration" to "a matter of weeks." This means that applications like Metamask "can realize yield faster and more efficiently than ever before." Through this partnership, M0 and Bridge are looking to replicate their experience with the MetaMask token to more issuers. "Applications want control over their dollar infrastructure, and importantly, they don't have to build that infrastructure themselves," said Luca Prosperi, founder and CEO of M0. What the industry thinks of the mUSD launch: "MetaMask USD is fully backed by U.S. cash and short-term U.S. Treasury bonds, which generate yield. MetaMask benefits from this yield, and in turn, it enables us to improve the user experience across the entire stack—from potentially lower costs to more seamless integration." "We believe the best incentive for holding mUSD is that it brings a better experience to DeFi—from issuance and bridging to swaps and spending. Over time, we may introduce additional incentives to reward early users." MetaMask Product Lead Gal Eldar noted, "MetaMask USD is a critical step in bringing the world on-chain. With MetaMask USD, users can bring their funds on-chain, put them to use, spend them virtually anywhere, and use them like currency. It will help us break down some of the most stubborn barriers in Web3, reducing the friction and cost for users to jump directly into self-custodial wallets." M0 Co-founder and CEO Luca Prosperi said, "We want to empower builders of great crypto products to truly control the digital dollar stack they use, providing the best end-user experience. Current stablecoin technology is not well suited for this. Products like MetaMask offer the advantage of customizable stablecoin technology, choice of issuance options, and optimized interoperability and liquidity." The M0-Bridge integration will provide builders with the best stablecoin stack and the most robust issuance capabilities."
According to DefiLlama, the value of stablecoins has swelled to over $278 billion this year. Industry analysts expect this figure to continue to grow with the introduction of stablecoin legislation in the United States. Bitwise Chief Investment Officer Matt Hogan said in May: "I expect this will soon become a $2.5 trillion market. In April of this year, Citigroup analysts predicted that the stablecoin market could reach $3.7 trillion in value within five years.
The booming stablecoin market reflects the broader trend of integrating traditional finance and crypto assets. mUSD is no longer simply the result of Metamask's product innovation; it's the inevitable outcome of the crypto ecosystem's development to a certain stage. Leveraging favorable factors such as Bridge's regulatory compliance, M0's technical infrastructure, and MetaMask's established user base, mUSD may have the potential to reshape the stablecoin market landscape, completely breaking down the barriers to the integration of crypto assets and traditional finance, and ultimately securing a significant share of the stablecoin market.
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