MetaMask's native mUSD stablecoin expected to launch on Ethereum and Linea

MetaMask, the Ethereum wallet developed by Consensys, has announced plans to launch its own native stablecoin, MetaMask USD (mUSD). In mUSD, the firm will integrate the stablecoin directly into its self-custodial crypto wallet ecosystem.

According to earlier reports by Cryptopolitan, the newly unveiled stablecoin will be fully backed by US dollar cash reserves and short-term Treasury securities. 

BREAKING: @MetaMask launches its stablecoin mUSD on Ethereum & Linea.

Issued by Bridge, a Stripe company, launching later this year, backed 1:1 by cash & U.S. Treasuries. Debit card payments are coming too. pic.twitter.com/DbKMaKOb1p

— Cryptopolitan (@CPOfficialtx) August 21, 2025

The token will be issued by Bridge, a subsidiary of Stripe, and adhere to compliance requirements under the recently enacted GENIUS Act, the first federal legislation regulating payment stablecoins.

mUSD to trade under the dollar unit

MetaMask executives said the stablecoin will be issued as the default digital dollar unit in the wallet’s ecosystem, streamlining transactions for its more than 100 million global users. By being native to the wallet, users can use mUSD to convert between crypto assets and dollar-pegged tokens without third-party services.

Ajay Mittal, vice president of product strategy at MetaMask, explained that the yield generated from backing assets will support ecosystem improvements. 

“MetaMask benefits from that yield, and in turn, it enables us to improve the user experience across the stack, from potentially lower costs and more seamless integrations,” Mittal remarked.

At launch, expected later this year, mUSD will be available within the MetaMask wallet on both Ethereum and Linea, the layer-2 blockchain built by Consensys. By the end of the year, the company intends to add mUSD as a payment method for the physical MetaMask debit card, in partnership with Mastercard.

Mittal told reporters that MetaMask USD is more than just another store of value. “Most stablecoins are issued first and then integrated into wallets. MetaMask USD flips that model because it’s native to MetaMask from day one. That means it’s not just a store of value, but a stablecoin designed to power every part of the MetaMask experience: ramping, swapping, bridging, and spending.”

Incentives and adoption grow due to regulatory clarity

MetaMask believes the primary incentive for users to adopt mUSD lies in the enhanced experience it enables. According to Mittal, improvements like simplified onboarding and bridging to smoother swaps and everyday payments will give the stablecoin an advantage over its competitors.

“We believe the best incentive for holding mUSD is the improved experience it unlocks across DeFi,” he said, adding that more incentives may be introduced to reward early adopters.

MetaMask’s entry into the stablecoin market comes at a “ripe” time for most crypto businesses worldwide. Monthly on-chain volume for stablecoins has recently surpassed $1 trillion. Executives at Consensys said the coin could simplify the process for new users and institutions entering the DeFi space, which previously was riddled with stringent regulatory guidelines. 

The launch also follows passage of the GENIUS Act, which established the first US federal framework for regulating payment stablecoins. 

With over 100 million users worldwide and growing demand for stablecoins, the company is moving mUSD ahead in its 2025 product strategy for both Ethereum and its own Linea network.

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