MetaMask has officially announced the launch of mUSD, its stablecoin pegged to the dollar and natively integrated into the wallet.MetaMask has officially announced the launch of mUSD, its stablecoin pegged to the dollar and natively integrated into the wallet.
MetaMask launches mUSD: native stablecoin with Bridge (part of Stripe) and M0, rollout on Ethereum and Linea
5 min read
MetaMask has announced the launch of mUSD, its stablecoin pegged to the dollar and natively integrated into the wallet. The issuance is managed by Bridge, a business unit belonging to Stripe for licensing and compliance, while the on-chain operations will rely on the decentralized infrastructure of M0. The rollout, scheduled for 2025, will begin on Ethereum and Linea, with a focus on real payments, DeFi applications, and cross‑chain transfers.
According to industry data and analysis, MetaMask reaches a significant scale: public reports indicate that the wallet had about 30 million active monthly users in February 2024, a figure that helps to understand the potential adoption pool of mUSD.
Analysts also observe that the wallet-native integration of a stablecoin tends to reduce conversion steps and friction in the on-ramp, with positive impacts on conversion times and retention in test and pilot environments.
What is the new stablecoin mUSD and what changes for MetaMask users?
MetaMask USD (mUSD) is a stablecoin pegged 1:1 to the dollar, designed to be used directly within MetaMask. In this context, it offers a stable medium of exchange for decentralized applications and DeFi protocols, avoiding external steps for on-ramp, swap, bridge, and payments. The native integration into the wallet aims to enhance the user experience, reducing costs and execution times.
How it works: issuance, reserves, and transparency
Issuance and compliance (Bridge)
Bridge manages the issuance of mUSD and regulatory compliance, following rigorous standards of licensing, AML/KYC, and operational controls in line with the requirements for stablecoin supporting payments (internal insight). It should be noted that the setup aims to align operational aspects with the most demanding frameworks.
1:1 Reserves and Attestations
- Full coverage: mUSD is declared to be covered 1:1 by dollar assets or highly liquid equivalents.
- Segregation and custody: the reserve assets will be held in separate accounts and subject to periodic checks.
- Transparency: regular attestations on reserves will be provided, and all mint/burn operations will be traceable on-chain thanks to the support of the M0 infrastructure.
The goal is to limit uncertainty about the underlying assets, strengthen user confidence, and facilitate adoption in regulated contexts. An interesting aspect is the combination of attestations and on-chain traceability.
Features in the wallet: what you will be able to do
- Simplified on‑ramp/off‑ramp, directly from the MetaMask interface.
- Swap and management of the mUSD balance alongside other tokens.
- Bridge cross‑chain to more networks to move value with fewer frictions.
- Native use in lending operations, participation in liquidity pool, and on-chain payments.
Roadmap and dates
- Initial networks: Ethereum and Linea.
- Rollout 2025: the launch will occur in phases throughout 2025, with subsequent expansions to additional L2 and other supported blockchains.
- Integrations: the integration of functionalities such as bridge, global on‑ramp services, and support tools for developers will be progressively activated.
The timeline includes a staggered release with attention to User Experience, security, and regulatory compliance.
Payments in the real world: MetaMask Card
mUSD is designed to be spent off‑chain via the MetaMask Card, which connects the crypto world with traditional payments.
- Accepted through the infrastructure of Mastercard.
- Instant conversion from mUSD to the local currency at the time of the transaction.
- Consistent experience between the wallet and POS/online terminals, with a reduction in intermediate steps.
Concrete usage examples
- Digital payments: e-commerce/SaaS subscriptions paid with the card, directly funded by the mUSD balance in the wallet.
- Daily DeFi: management of liquidity and loans, with mUSD used as stable collateral.
- Remittances and cross‑chain micro-payments, with low fees.
- Treasury crypto: companies and creators that manage their cash reserve in mUSD and connect on‑chain and off‑chain transactions.
Quick Comparison: mUSD vs other stablecoins
- USDC (Circle): wide institutional adoption and frequent attestations; the distinctive advantage of mUSD lies in the native integration with MetaMask.
- PayPal USD (PYUSD): connects traditional payments to crypto ones; with the MetaMask Card, mUSD aims to create a direct channel similar to the crypto-native ecosystem.
- USDT (Tether): ensures high liquidity on many chains; mUSD focuses on on-chain transparency and a wallet-centric experience.
In summary, mUSD seeks to combine user experience, compliance, and practicality of direct spending.
Risks and regulatory context
- Reserves: the credibility of the stablecoin will depend on the timeliness of attestations and the quality of the assets backing the reserves.
- Counterparty: the operations of Bridge and compliance with local regulatory requirements could affect availability and functionalities.
- Bridge cross‑chain: security and management of technical risks remain fundamental aspects.
- Regulation: the regulatory framework is evolving both in the USA and in Europe. In the European context, the MiCA regulation came into force on June 29, 2023; some provisions related to e‑money tokens and asset‑referenced tokens are operative from June 30, 2024.
At the international level, the guidelines and recommendations of regulators and supervisory bodies are an important reference for stablecoin projects: the Financial Stability Board (FSB) has published recommendations and frameworks aimed at promoting consistent rules and operational robustness for global stablecoins.
What is still missing (next steps to verify)
- Independent attestations/audits of reserves: definition of frequency, scope, and appointed auditors.
- Complete legal terms related to Bridge: jurisdictions, licenses, risk management, and methods of ring-fencing resources.
- Fees for on‑ramp, swap, bridge, and card usage, as well as spending limits and FX conversion mechanisms.
- Supported countries and timeline for the launch of the MetaMask Card.
- KYC Requirements for retail and business users, and the policies for blocking/unblocking funds.
- Technical documentation of M0 related to governance, security, and emergency plans.
Official sources and insights
- Official MetaMask Announcement: MetaMask USD (mUSD)
- Official text of the MiCA regulation (EU)
- a16z Analysis: estimate of crypto users and MetaMask reference (Feb 2024)
- FSB: High‑level recommendations for the regulation of stablecoins (official report)
Market Opportunity
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