MetaMask Unveils Native mUSD Stablecoin To Be Rolled Out on Ethereum and Linea

MetaMask, the self-custody wallet used by tens of millions, is stepping directly into the stablecoin market with MetaMask USD ($mUSD)—a dollar-pegged asset that will debut on Ethereum and Linea, ConsenSys' EVM-equivalent layer 2.

The $mUSD stablecoin will be built into the self-custodial wallet, allowing MetaMask users to enjoy an effortless dollar-denominated stablecoin they can hold, spend, and transact effortlessly in the web3 ecosystem.

$mUSD To Be Rolled Out Later in the Year

In a press release, MetaMask revealed intentions to introduce its proprietary stablecoin, $mUSD, via Bridge and M0. The launch, which will happen later in the year, will make MetaMask the first self-custodial wallet to launch its own native stablecoin. 

According to Bridge co-founder and CEO Zach Abrams, their issuance technology will enable MetaMask to reduce the time needed to issue their own stablecoin, mUSD. What would have otherwise taken over a year of complicated integrations would be accomplished in weeks with mUSD.

According to the release, the $mUSD stablecoin will be used in two ways. Firstly, the stablecoin will be used in the MetaMask wallet for seamless onramps, swaps, transfers, and bridging across chains. 

The stablecoin will also be used in real life via the MetaMask Card. The MetaMask Card will be launched in collaboration with MasterCard, allowing mUSD to be used by millions of merchants worldwide that accept Mastercard.

Why $mUSD Will Launch on Ethereum and Linea First

Along with that, MetaMask will work with the M0 liquidity network, which will allow composable cross-chain usage, according to the release. $mUSD will first be launched on the Ethereum blockchain, then later be released on Linea.

Launching on Ethereum ensures immediate composability with the largest base of DeFi protocols, while Linea offers EVM-equivalent performance with lower costs. This positions $mUSD to be a foundational unit across Linea's growing ecosystem. 

MetaMask stated that the stablecoin will be integrated with DEXs, lending markets, custodial platforms, and other core primitives to drive TVL and improve user UX on day one. For developers, stable, low-slippage mUSD pools can tighten spreads and enhance the economics of on-chain apps.

MetaMask Prepares To Extend Services

The launch into the stablecoin market follows MetaMask's integrating of the Tron blockchain as its third major non-Ethereum blockchain, now secured since its launch in 2016. However, the launch of mUSD marks the beginning of an extension of services by MetaMask.

The MetaMask Card will be released later this year, according to the announcement, and will allow users to spend mUSD on normal transactions. This is simply because MetaMask hopes to create a bridge between digital assets and the real world, as part of the company's strategy to serve the world beyond the crypto community.

MetaMask argues that this will simplify Web3 and self-custody. Gal Eldar, product lead at MetaMask, said that the stablecoin mUSD will lower the adoption costs of Web3. He says the $mUSD stablecoin will allow users to transfer their assets on-chain, store them on DeFi protocols, and spend them on regular payments when they like.

MetaMask will sit at the intersection of self-custody, the rising trend of stablecoin adoption, and real-world utility with the introduction of $mUSD.