MetaMask Debuts mUSD Stablecoin in Collaboration with Bridge

MetaMask, the Consensys-backed non-custodial crypto wallet used by roughly 30 million people monthly, is rolling out mUSD, a dollar-pegged stablecoin it says will be built into the wallet and plugged into the DeFi ecosystem.

The announcement, shared with The Defiant, says mUSD will be available in-wallet at launch for on-ramps, swaps, transfers and cross-chain bridging, with “real-life” merchant spending via MetaMask Card planned later this year.

Initially, mUSD will be launched on Ethereum and Linea, a Layer 2 network bootstrapped by Consensys, where it’ll play a foundational role in the Linea DeFi ecosystem, per the press release.

Later on, mUSD will be integrated across core protocols, including lending markets, decentralized exchanges, and custodial platforms, unlocking deep liquidity and utility for users, per the announcement.

Native Integration

Most stablecoins are typically issued first and then integrated into wallets. Ajay Mittal, vice president of product strategy at MetaMask, told The Defiant that mUSD flips this model: it is native to MetaMask from day one.

“That means it’s not just a store of value, but a stablecoin designed to power every part of the MetaMask experience: ramping, swapping, bridging, and spending. Success for mUSD means becoming the connective liquidity layer inside MetaMask and across DeFi,” Mittal said.

Eventually, MetaMask plans to embed mUSD across all chains it operates on, starting with Ethereum and Linea, with other networks like TRON and Sei to follow, Mittal explained.

Mittal noted the GENIUS Act has established a federal framework for payment stablecoins, while cost-effective on-ramps remain a challenge. By offering a native stablecoin within MetaMask and the MetaMask Card, the company aims to reduce friction for users as MetaMask “seeks to empower users to on-ramp, transact, and off-ramp without having to rely on multiple providers and needless friction.”

Reducing Friction and Costs

Gal Eldar, product lead at MetaMask, said mUSD plays a “critical step in bringing the world onchain.”

“By integrating natively into MetaMask’s product offering, 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,” Eldar added.

Under the hood, MetaMask is not going it alone. The token will use the M^0 issuance stack — a modular, Ethereum-centric stablecoin platform — and is being built with help from Bridge, the payments-focused stablecoin infrastructure business that Stripe acquired earlier this year in a deal reportedly worth $1.1 billion.

Mittal confirmed mUSD is fully backed 1:1 by U.S. dollars and short-term U.S. Treasuries. “Our goal is to offer 1:1 onramps through mUSD, or as close as possible, given liquidity and transaction cost limitations,” Mittal added.

While no exact launch date has been disclosed, the full rollout of mUSD is expected “later in 2025 initially across Ethereum and Linea.” Initially, mUSD won’t offer yield directly to users, Mittal said, noting further that the stablecoin could still play a “role in future incentive programs within MetaMask.”

The stakes are high. The stablecoin market is nearing $280 billion, with Tether’s USDT alone accounting for more than 60% of the sector, according to DefiLlama. Momentum is also accelerating. Just weeks after U.S. President Donald Trump signed the GENIUS Act, providing clearer rules for stablecoin backing, auditing, and oversight, the market cap surged by roughly $18 billion.

Meanwhile, Wyoming this week became the first U.S. state to issue its own stablecoin. The Frontier Stable Token (FRNT), backed by USD and Treasury bills, has been hailed by some as a landmark moment for digital currency adoption, though critics have raised concerns about privacy and centralization.