MetaMask, the self-custodial crypto wallet owned by Consensys, said Thursday it will launch a dollar-backed stablecoin called MetaMask USD (mUSD).
MetaMask said on Thursday that the stablecoin will be issued by Bridge, an issuance and orchestration platform for stablecoins that was acquired by the payments platform Stripe, and will be powered by the liquidity platform M0.
MUSD will be integrated into the MetaMask wallet, allowing use of the stablecoin across Web3 applications. MetaMask said the stablecoin is designed for cross-chain use through M0’s liquidity network.
The stablecoin will debut later in 2025 on the Ethereum blockchain and the Linea network, an Ethereum Virtual Machine (EVM) equivalent layer-2 bootstrapped by Consensys.
MetaMask introduces the wallet-native stablecoin
The company said the stablecoin is positioned to play a major role in Linea’s decentralized finance (DeFi) ecosystem.
MetaMask said the token will be backed 1-to-1 with dollar-equivalent reserves and integrated into wallet features including swaps, on-ramps and bridging. The company also plans to launch a MetaMask Card later this year in partnership with Mastercard, enabling users to spend mUSD in everyday transactions.
MetaMask said that a wallet-native, self-custodial stablecoin will enhance the experience of users who regularly on-ramp, hold, trade, lend and spend value using MetaMask. The company said this “simplifies the Web3 and self-custodial journey.”
Gal Eldar, product lead at MetaMask, said the new stablecoin lowers barriers for users entering the Web3 space.
Eldar said it reduces the costs and simplifies the onboarding process. He added that the stablecoin will allow users to move their funds onchain, deploy them into DeFi and spend them in everyday transactions.
Related: Judge unfreezes $57M in stablecoins linked to Libra token scandal
United States’ GENIUS Act paves the way for stablecoins
Citing the recently signed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, MetaMask said that the introduction of the mUSD stablecoin comes amid increased regulatory clarity.
On July 18, US President Donald Trump signed the GENIUS Act into law, setting requirements on who can issue stablecoins, how they must be backed and what disclosures are required.
Apart from MetaMask, other players have jumped into the stablecoin race. On Thursday, the Trump-backed World Liberty Financial minted 9% of its USD1 stablecoin supply. This pushed the DeFi company’s holdings and stablecoin supply to record highs.
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