rewrite this title MetaMask enters stablecoin scene with mUSD launch on Ethereum and Linea

MetaMask, the widely used self-custodial wallet, has revealed plans to launch its own stablecoin, MetaMask USD (mUSD), later this year.

According to an Aug. 21 statement, mUSD will initially debut on Ethereum and Linea L2, where it will become a key component of Linea’s growing DeFi ecosystem.

The project will be developed in collaboration with Bridge, a Stripe-owned stablecoin issuer, and M0, a decentralized platform providing on-chain liquidity infrastructure.

MetaMask’s mUSD

According to MetaMask, the stablecoin would be fully backed 1:1 with high-quality, highly liquid dollar equivalent assets.

The asset would also be integrated into major protocols, including lending platforms, decentralized exchanges, and custodial services. MetaMask expects these integrations to generate deeper liquidity and increase its ecosystem’s total value locked (TVL).

The wallet service provider emphasized that its users can leverage mUSD for seamless swaps, transfers, and bridging within the wallet, while the MetaMask card will enable real-life spending by the end of 2025.

Gal Eldar, MetaMask’s Product Lead, described the launch as a step toward reducing barriers for people entering the Web3 ecosystem. According to him, mUSD will let users bring their funds on-chain, make them productive, and use them wherever they want, thereby creating value in wallets and beyond.

Stablecoin ecosystem growth

The mUSD rollout coincides with a shifting regulatory environment in the US regarding the $285 billion sector currently dominated by Tether’s USDT.

Crypto advisory firm Castle Labs pointed out that the recent approval of the GENIUS Stablecoin Act has signaled a more supportive framework for digital dollar alternatives. According to the firm, this legislation could accelerate the launch of new stablecoins and encourage existing projects to expand their on-chain presence.

However, despite the growing adoption of the nascent industry, stablecoins remain heavily concentrated on centralized exchanges.

Considering this, Castle Labs noted that the long-term success of any stablecoin project would depend on its liquidity, real-world usability, and integration across wallets and DeFi platforms.

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