MetaMask Launches mUSD Stablecoin to Power Web3

MetaMask Steps Into the Stablecoin Arena

MetaMask, the crypto wallet used by millions worldwide, has announced the launch of its own dollar-backed stablecoin, MetaMask USD (mUSD). The token will debut later in 2025 on Ethereum and Consensys’ Linea network, signaling a bold move into the stablecoin market. 

The stablecoin will be issued by Bridge, a platform acquired by Stripe, and powered by liquidity network M0. Unlike most competitors, mUSD will be directly integrated into MetaMask’s wallet, giving users seamless access across DeFi and Web3 apps.

He stressed that mUSD will cut onboarding costs and simplify the process of moving money onchain.

A Wallet-Native Stablecoin for DeFi

MetaMask says mUSD will be fully backed 1:1 by dollar-equivalent reserves, ensuring transparency and stability. It will also be woven into MetaMask’s existing features, including swaps, on-ramps, and bridging. 

The company sees mUSD as a cornerstone of Linea’s DeFi ecosystem, where users can lend, borrow, and trade with confidence. More than just a DeFi token, mUSD is designed for everyday spending. MetaMask confirmed it will launch a MetaMask Card later this year in partnership with Mastercard, enabling payments with mUSD at retailers worldwide.

Simplifying the Web3 Journey

The launch of mUSD marks MetaMask’s attempt to address one of crypto’s biggest pain points: the complexity of onboarding. By making stablecoin functionality native to the wallet, MetaMask hopes to cut through the friction that new users face when navigating between exchanges, banks, and DeFi apps. 

The company framed mUSD as a self-custodial alternative to centralized stablecoins. It emphasized that the wallet-native design puts users in control, rather than relying on third-party intermediaries. 

This move positions MetaMask as not just a gateway to Web3 but a direct competitor to Circle’s USDC and Tether’s USDT—the two stablecoins that currently dominate the $266 billion global market.

Regulatory Winds at MetaMask’s Back

MetaMask’s stablecoin arrives at a time of growing regulatory clarity in the U.S. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed into law by President Donald Trump on July 18, 2025, sets rules for issuance, backing, and disclosure requirements. 

MetaMask cited the GENIUS Act as a turning point that gave it confidence to push ahead with mUSD. With the legal landscape clearer, more crypto firms are entering the stablecoin race. On the same day as MetaMask’s announcement, Trump-backed World Liberty Financial minted 9% of its USD1 stablecoin supply, a sign of the sector’s rapid expansion.

The Bigger Picture: Stablecoins as the New Battleground

With Ethereum ETFs surging, DeFi rebounding, and stablecoin adoption exploding, the launch of mUSD underscores how wallet providers are now competing head-on with traditional issuers. For MetaMask, the strategy is clear: build a wallet-native currency that ties users more deeply into its ecosystem.

If successful, mUSD could transform MetaMask from a gateway tool into a full-stack financial platform—a shift that may reshape how millions interact with crypto every day.