Metamask to enter $250B stablecoin market with ‘Metamask USD’ issued by Stripe

MetaMask is reportedly planning to join hands with Stripe to introduce a stablecoin called “MetaMask USD” in an initiative that was announced via a governance proposal. 

The ultimate aim of the stablecoin would be to reduce transaction volatility and enhance usability for altcoin transactions while leveraging Stripe’s already existing financial infrastructure to bridge traditional finance and decentralized platforms.

Will Metamask launch a stablecoin?

According to the proposal available, Metamask plans to launch a stablecoin (mmUSD) that will be issued by Stripe but will leverage the “M^0” network for unchained issuance and settlement.

The stablecoin is reportedly being set up as a cornerstone asset for the Metamask ecosystem, providing a highly liquid base currency natively integrated across Metamask services.

The proposal is being classified as part of a broader crypto growth trend, with the potential to not only reshape DeFi user behavior and market dynamics but also drive organic distribution and deepen stablecoin liquidity.

Of course, the success of the stablecoin hinges on user adoption and the ability to keep its value stable. At this time, there has been no official confirmation from MetaMask or Stripe and specific details about the stablecoin’s structure, launch timeline, or regulatory considerations are limited. However, it would not be a shock to find that this is truly in the works.

After all, stablecoins have quickly grown to become crypto’s fastest growing killer application, with over $250 billion in circulation today, a figure that significantly dwarfs the single-digit billions circulating in 2020.

Currently, around 20 million addresses transact with stablecoins on public blockchains, and even Federal Reserve Governor Christopher Waller had to acknowledge their significance.

Waller noted that about 99% of stablecoin market capitalization is linked to the US dollar, which has created a dynamic where crypto, actually serves to extend dollar usage globally rather than discourage it.

Brian Brooks, former US Comptroller of the Currency, believes, “Stablecoins can keep the dollar the world’s reserve currency” by making it more accessible worldwide.

Talks of a Metamask stablecoin follows the debut of its card

The proposal to launch a Metamask stablecoin comes after the Web3 company unveiled its card in partnership with Baanx and Mastercard.

According to an announcement from the company, the card will allow its holders to “pay with crypto with no extra steps, no banks, no unnecessary charges, or top-ups needed.”

The card is a critical innovation that connects existing stablecoins directly to everyday payment systems without sacrificing the very principle that separates crypto from traditional finance: self custody.

In an interview Simon Jones, Chief Commercial Officer at Baanx, highlighted the gap between crypto and tradfi and how it is finally being bridged through “non-custodial neobanking.”

“We’ve kind of built a coalition of people around us ranging from our partnerships with people like MasterCard and Visa to our issuing platforms. We go all the way through from the blockchain to the consumer via the partner with the bits in the middle,” he said.

In short, companies like Baanx are building systems that will allow users to spend crypto directly from their self-custody wallet without fully surrendering control to a bank or exchange.

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