MetaMask's mUSD Stablecoin Debuts on Ethereum & Linea

Key Takeaways

• MetaMask is set to launch its native stablecoin, mUSD, on the Ethereum and Linea networks.
• mUSD will support key features like on-ramps, swaps, bridging, and card payments, designed to ease user experience in Web3.

MetaMask Enters the Stablecoin Arena with mUSD

MetaMask confirmed its plans to launch MetaMask USD ($mUSD) later this year. This announcement builds on previous reports of the crypto wallet introducing its own token.

Consensys, MetaMask's parent company, views the stablecoin as “a critical step forward in bringing the world onchain,” especially in light of increasing adoption and regulatory clarity provided by acts like the GENIUS Act, which seeks to establish a federal framework for payment stablecoins.

mUSD Functionality and Rollout

The mUSD stablecoin, issued by Bridge, will initially be available on Ethereum and Linea, Consensys’ Ethereum layer-2 network. It will support on-ramps, swaps, bridging, and other functionalities.

Powered by M0, a decentralized stablecoin infrastructure platform, mUSD is backed 1:1 by dollar-equivalent assets with real-time transparency. MetaMask aims to integrate mUSD into the MetaMask Card by year-end, enabling spending at millions of Mastercard merchants.

Simplifying Web3 Transactions

Gal Eldar, Product Lead at MetaMask, stated that the goal of mUSD is to make Web3 and self-custody as user-friendly as traditional finance. The stablecoin is intended to remove onboarding obstacles, lower intermediary involvement and associated fees, and enhance daily usability through integration with the MetaMask Card.

“It will allow us to cut through some of the most stubborn barriers in web3 and reduce both friction and costs for people onboarding directly into a self-custodial wallet,” said Eldar. “With MetaMask USD, users can bring their money onchain, put it to work, spend it almost anywhere, and use it like money should be used.”

“We want to empower the builders of great crypto products to truly control the digital dollar stack they utilize in order to deliver the best end-user experience,” said Luca Prosperi, co-founder and CEO of M0.

“Issuing a custom stablecoin used to take more than a year of complex integrations,” said Zach Abrams, co-founder and CEO of Bridge. “With our issuance technology, we’ve reduced that timeline to a matter of weeks.”

No MetaMask Token (Yet)

While rumors of a MetaMask MASK token have circulated, particularly after ConsenSys CEO Joseph Lubin mentioned the possibility of a token and DAO for MetaMask’s decentralization in 2022, MetaMask has consistently denied these rumors. The focus is now clearly on MetaMask USD, with more details to be released in the coming weeks.

As new tokens and stablecoins enter the market, Codeum stands ready to provide security audits, KYC compliance, and consulting for blockchain projects.