MegaETH to Launch USDm Stablecoin with Ethena

MegaETH Unveils USDm Stablecoin in Collaboration with Ethena

MegaETH, a scaling network focused on fast Ethereum transactions, has announced the launch of its native stablecoin, USDm, in partnership with Ethena, a DeFi protocol. The stablecoin aims to reduce transaction costs and expand the possibilities for applications built on the network.

Key Highlights of the USDm Stablecoin:

• Lower Fees: Revenue from reserve assets will subsidize sequencer costs, leading to reduced transaction fees for users.
• Enhanced Design Space: USDm facilitates more expressive application designs, fostering innovation within the MegaETH ecosystem.
• Ethena Partnership: Built in collaboration with Ethena, leveraging their expertise in stablecoin solutions.

According to MegaETH co-founder Shuyao Kong, USDm will create a "win-win scenario for all stakeholders" by decreasing costs for users and improving the potential for applications. The initial backing for USDm will come from Ethena's USDtb, which generates yield using BlackRock’s tokenized money market fund BUIDL. MegaETH indicated that future Ethena-issued tokens, such as USDe, might also be incorporated as backing assets.

The move by MegaETH highlights a trend toward crypto ecosystems creating their own stablecoins to reduce reliance on established options like Circle's USDC and Tether's USDT. MetaMask recently announced its stablecoin launch with M0 and Stripe’s Bridge, while Hyperliquid is seeking a stablecoin issuer partner.

Ethena's role in this launch demonstrates its growing presence in the stablecoin-as-a-service sector. With the $1.3 billion USDe digital dollar already under its belt, Ethena is actively assisting other crypto platforms in issuing their own stablecoins.