MetaMask launched mUSD on September 15, 2025, becoming the first self-custodial wallet to issue its own stablecoin.
Deployed on both Ethereum and Linea, mUSD is fully backed by cash and cash-equivalents through Stripe’s Bridge and powered by the M0 protocol.
The launch capitalizes on the $290 billion stablecoin market’s growing profitability, with mUSD positioned as Linea’s default stablecoin.
MetaMask’s key advantage lies in its 30 million monthly active users, an embedded distribution network no competitor can match.
This wallet-native approach, combined with recent regulatory clarity, positions mUSD to disrupt established stablecoins through seamless integration and instant accessibility.
Key Takeaways
First wallet-native stablecoin: mUSD is built directly into MetaMask’s ecosystem, eliminating traditional barriers between acquisition and usage for 30 million users.Real-world spending capability: Integration with MetaMask Card enables mUSD spending at 150 million merchants worldwide through Mastercard partnership.Regulatory compliance advantage: Launched under GENIUS Act framework with full backing by cash and Treasury securities, positioning it among compliant stablecoins.Multi-chain functionality: Operates on both Ethereum and Linea networks with built-in bridging, swapping, and cross-chain capabilities within one interface.Liquidity challenge ahead: Despite innovative features, mUSD faces significant adoption hurdles with only $21.92 million initial circulation versus USDT’s $160 billion dominance.
What is mUSD and why it matters
MetaMask USD (mUSD) represents a significant shift in the stablecoin landscape as the first wallet-native digital dollar.
Launched officially on September 15, 2025, the mUSD stablecoin introduces a pioneering model that differentiates it from its competitors in the increasingly crowded stablecoin market.
Launch date and issuing entity
Unlike traditional stablecoins that operate independently before wallet integration, mUSD was designed specifically for MetaMask’s ecosystem from inception.
As Ajay Mittal, MetaMask’s Vice President of Product, pointed out, “Unlike other stablecoins, which are issued first and then integrated into wallets, mUSD is initially built into MetaMask”.
This approach creates immediate utility and distribution advantages that most new stablecoins in 2025 lack.
The token is issued by Bridge, a specialized stablecoin orchestration and issuance platform owned by payments giant Stripe.
This partnership gives mUSD substantial credibility in the financial technology sector.
Bridge provides critical infrastructure components, including compliant licensing, monitoring systems, and rigorous reserve management.
Essentially, Bridge handles the regulatory requirements while MetaMask focuses on user experience and integration.
Built on the M0 protocol
Beneath the surface, mUSD operates on M0, a decentralized stablecoin infrastructure and liquidity platform designed specifically for interoperability across blockchain networks.
This technical foundation enables several key capabilities that traditional stablecoins often struggle with.
The M0 protocol provides:
Cross-chain composability through its liquidity networkDecentralized infrastructure aligned with web3 principlesReal-time transparency of reserves and transactionsExtensible architecture for future functionality
As Luca Prosperi, Co-founder and CEO of M0, explained: “The current incarnation of stablecoin technology isn’t fit for purpose.
Products such as MetaMask benefit from being able to customize the stablecoin technology, from having choice over their issuance options, and from optimizing for interoperability and liquidity”.
This infrastructure enables mUSD to be fully backed 1:1 by high-quality, highly-liquid dollar equivalent assets, primarily cash and short-term treasury bonds.
MetaMask’s first native stablecoin
The introduction of mUSD represents a strategic expansion for MetaMask beyond being simply a wallet provider.
Furthermore, it establishes MetaMask as the first self-custodial wallet to launch its own stablecoin, creating a precedent that other wallets may follow.
The MetaMask stablecoin arrives amid increased regulatory clarity, particularly following the passage of the U.S. GENIUS Act, which introduced the first federal framework for regulating payment stablecoins.
This timing is deliberate, allowing MetaMask to position mUSD among the best stablecoins with a strong regulatory foundation.
Initially available on Ethereum and Linea (MetaMask’s layer-2 network), mUSD is positioned to play a foundational role in Linea’s growing DeFi ecosystem.
Consequently, mUSD will enhance liquidity across protocols including lending markets, decentralized exchanges, and custodial platforms.
The strategic value of mUSD extends beyond mere convenience.
By capturing stablecoin market revenue and creating tighter integration between its wallet, DeFi services, and payments, MetaMask aims to establish a comprehensive financial ecosystem.
This positions Linea as a potential go-to network powered by its native stablecoin.
Unlike other digital assets that require multiple platforms to manage, MetaMask’s integration of mUSD establishes a comprehensive, self-contained ecosystem for stablecoin users.
This deep wallet-native approach creates substantial efficiencies across the stablecoin lifecycle from acquisition through spending.
Wallet-native functionality
MetaMask has embedded mUSD directly into its wallet infrastructure, creating what industry analysts describe as the first truly wallet-native stablecoin experience.
This direct integration eliminates traditional barriers between stablecoin acquisition and usage.
Rather than treating the stablecoin as an external asset, MetaMask positions mUSD at the core of its ecosystem, enabling users to perform all essential operations without leaving the wallet interface.
The wallet-native approach delivers several key advantages:
Streamlined operations: Users can buy, sell, swap, transfer, and bridge mUSD directly within MetaMask’s interfaceReduced friction: The integration “cuts through some of the most stubborn barriers in web3” by eliminating intermediary platformsCost efficiency: Native integration reduces transaction costs compared to competing stablecoinsSimplified onboarding: The design “reduces the costs and simplifies the onboarding process” for users entering Web3
Gal Eldar, product lead at MetaMask, emphasizes that this wallet-native approach “lowers barriers for users entering the Web3 space”.
Moreover, the model eliminates dependencies on centralized exchanges, placing complete control within the self-custodial environment.
Support for Ethereum and Linea
MetaMask USD initially launches on two strategic networks: Ethereum and Linea.
This dual-chain deployment balances established infrastructure with next-generation scaling solutions.
Ethereum provides the security and liquidity advantages of the largest smart contract platform, primarily serving as the foundation for mUSD’s reserve system.
Simultaneously, Linea, the EVM-equivalent layer-2 network bootstrapped by Consensys, offers faster and more cost-effective transactions.
On Linea specifically, mUSD has been positioned as the “default stablecoin”, with incentive structures already in place:
Liquidity pools against USDT, USDC, ETH, and LINEA began receiving rewards from September 15Initial trading occurs on Etherex, a newly launched decentralized exchangeIncentives could reach up to $54 million in annualized fees shared with mUSD holders and liquidity providers
This dual-network approach represents just the beginning of MetaMask’s multi-chain strategy.
According to several sources, the team plans expansion to additional networks over time, establishing mUSD as a cross-chain liquidity solution.
Spending via MetaMask Card
Perhaps the most groundbreaking integration comes through the MetaMask Card, which transforms mUSD from a purely digital asset into a practical everyday spending tool.
Through partnership with Mastercard, MetaMask will enable users to spend mUSD at approximately 150 million merchants worldwide.
The card works by instantly converting mUSD into local currency at the point of sale, with minimal conversion fees applied during transactions.
This functionality addresses one of the persistent challenges facing stablecoins: real-world utility beyond cryptocurrency trading.
Currently, the MetaMask Card supports six tokens (wETH, EURe, GBPe, aUSDC, USDC, and USDT) on the Linea network.
However, MetaMask has confirmed that mUSD will become a funding option for the card before year-end, prioritizing its native stablecoin as the preferred spending medium.
This card integration represents a critical step in MetaMask’s strategy to position mUSD among the best stablecoins in 2025.
By connecting decentralized finance directly to traditional payment infrastructure, MetaMask bridges the gap between crypto-native users and mainstream commerce in a way few other new stablecoins in 2025 have achieved.
Core features and how to use mUSD
MetaMask has engineered the mUSD stablecoin with four fundamental capabilities that streamline cryptocurrency operations.
These core features transform how users interact with digital dollars, establishing a comprehensive financial toolkit within a single interface.
Buy with fiat using cards or PayPal
The on-ramp process for mUSD stands out among new stablecoins in 2025 through its simplified acquisition flow.
Users can purchase mUSD directly within their MetaMask wallet using an extensive range of payment methods, including credit cards, debit cards, bank transfers, Apple Pay, Google Pay, and PayPal.
This eliminates the traditional multi-step process typically required when buying stablecoins through exchanges.
Upon purchase, mUSD tokens are delivered immediately to the user’s wallet on either Ethereum or Linea.
This direct-to-wallet approach bypasses the delays commonly associated with exchange withdrawals.
The system automatically handles all technical aspects of blockchain transactions, presenting a streamlined interface suitable for both novice and experienced users.
Sell and off-ramp to bank or card
Equally significant, the MetaMask stablecoin offers simplified off-ramping capabilities.
Users can convert mUSD back to fiat currency through several pathways, including direct transfers to bank accounts, PayPal, or card services.
This reverse process completes the full lifecycle management within a single application.
The off-ramp functionality ensures competitive fees compared to traditional exchanges.
Through strategic partnerships with payment processors, the system maintains transparency about costs while optimizing for efficiency.
Swap with thousands of tokens
Within the trading ecosystem, mUSD offers unparalleled flexibility.
The stablecoin can be swapped for thousands of tokens across both Ethereum and Linea networks.
This capability utilizes MetaMask’s aggregator technology, which automatically compares rates across multiple liquidity sources to secure optimal pricing.
A key technical advantage is the inclusion of gas fees within quotes, providing users with exact cost information before confirming transactions.
This transparent approach distinguishes mUSD from many competing stablecoins where hidden fees or slippage can lead to unexpected costs.
Bridge across chains
Among the most technically advanced features is mUSD’s bridging capability.
The MetaMask stablecoin was designed from inception as a multi-chain asset, currently supporting Ethereum and Linea with plans to expand to additional networks.
The bridging process employs intelligent routing algorithms that automatically identify the most cost-effective pathways between blockchains.
This effectively minimizes transaction costs while maintaining security.
Furthermore, the system supports cross-chain swapping, allowing users to send mUSD from one network and receive a different token on another in a single transaction.
For instance, a user can initiate a transfer of mUSD from Ethereum and receive another token on Linea without needing separate transactions.
This cross-chain efficiency represents a significant technical advancement among the best stablecoins currently available, substantially reducing both time and transaction costs for multi-chain operations.
How mUSD compares to other stablecoins
In the crowded stablecoin market, MetaMask’s mUSD enters a field dominated by established giants.
The stablecoin landscape has expanded dramatically, now exceeding $250 billion in total market capitalization, requiring newcomers to differentiate themselves through transparency, functionality, and distribution advantages.
USDT vs USDC vs mUSD
The stablecoin hierarchy remains clear: Tether (USDT) leads with over $160 billion in market capitalization, followed by USDC at approximately $34 billion.
Nevertheless, mUSD’s approach differs fundamentally from both incumbents.
USDT, despite its market dominance and trading volume of approximately $50 billion daily, has historically faced scrutiny over reserve transparency.
In contrast, USDC publishes monthly attestations through Grant Thornton LLP, offering greater clarity on its 1:1 dollar backing.
mUSD adopts USDC’s transparency model but enhances it with institutional-grade custody.
Unlike USDT’s mixed reserves that include corporate bonds and “other investments”, mUSD follows USDC’s straightforward approach of backing primarily with cash and U.S. Treasury securities.
A key regulatory distinction emerges in 2025’s landscape: USDC has achieved MiCA compliance in the European Union, whereas USDT has not.
mUSD enters the market fully compliant with the GENIUS Act framework, positioning it among regulated options from inception.
New stablecoins in 2025: PYUSD, USD1
PayPal USD (PYUSD) represents a significant 2025 competitor, leveraging PayPal’s massive payment network.
PYUSD offers rewards based on holdings percentages and has expanded beyond Ethereum to Stellar for enhanced cross-border capabilities.
World Liberty Financial’s USD1, launched in April 2025, has rapidly entered the top five stablecoins by market capitalization.
Similar to mUSD, USD1 emphasizes transparency with its Treasury-backed reserves.
Both competitors have secured major payment rails, PYUSD through PayPal’s network and USD1 via Chainlink’s CCIP.
Yet neither offers wallet-native functionality comparable to mUSD’s MetaMask integration.
MetaMask’s user base as a differentiator
mUSD’s most significant advantage stems from MetaMask’s 30 million monthly active users, creating a distribution channel unmatched by any other stablecoin.
This embedded user base provides immediate utility without requiring new platform adoption.
The wallet’s existing integration across DeFi protocols also supplies instant liquidity venues for mUSD.
This stands in stark contrast to other new stablecoins that must incentivize liquidity from scratch.
Furthermore, MetaMask’s Mastercard partnership enables mUSD spending at over 150 million merchants globally, matching PYUSD’s payment functionality while maintaining MetaMask’s self-custodial ethos.
Although mUSD’s initial deployment across both Ethereum and Linea risks fragmenting liquidity, MetaMask’s established DeFi presence provides significant advantages for achieving swift adoption in an increasingly competitive landscape.
Risks, challenges, and future outlook
Despite its innovative integration features, mUSD faces significant challenges in a market dominated by deeply entrenched competitors.
The path ahead involves navigating complex financial terrain while leveraging MetaMask’s substantial user base.
Liquidity and adoption hurdles
Liquidity represents the most formidable obstacle for the mUSD stablecoin.
USDT currently processes approximately $137.39 billion in daily trades and holds nearly 60% of the stablecoin market.
This established volume creates substantial switching costs that newcomers inevitably struggle to overcome.
Even with MetaMask’s distribution advantage, mUSD launched with a circulating supply of just $21.92 million, creating a stark contrast with market leaders.
This liquidity gap mirrors challenges faced by PayPal’s PYUSD, which struggled to gain market share despite its global payments brand.
Success will primarily depend on mUSD’s ability to develop sufficient liquidity across trading pairs.
Potential growth factors include major DeFi protocols adding mUSD liquidity pools, incentives on Linea attracting developers, and MetaMask Card integration gaining traction for payments.
Regulatory compliance and audits
The regulatory landscape presents both opportunities and threats.
Though mUSD launched amid increased clarity following the GENIUS Act, global regulatory frameworks remain in flux.
Europe’s MiCAR and other international regulations could impose new disclosure requirements or collateral standards.
The wallet-native model creates interesting regulatory questions, if issues arise, responsibility appears split between Bridge (handling compliance and issuance) and the decentralized M0 protocol.
This division may require ongoing clarification as adoption scales.
Regular compliance audits will prove essential for maintaining trust.
These systematic reviews identify potential gaps, assess risk exposure, and provide recommendations to improve regulatory adherence.
Furthermore, third-party audits build trust with external organizations, demonstrating necessary controls are in place.
Potential for ecosystem growth
Nevertheless, mUSD’s integration with MetaMask positions it for substantial growth.
The stablecoin could drive Total Value Locked on Linea from approximately $150 billion currently to potentially $750 billion by 2025.
As traditional payment rails increasingly engage with stablecoins, mUSD arrives in a market where integration infrastructure already exists.
Visa, Mastercard, Shopify, and Stripe have introduced stablecoin pilots and integrations, creating ready-made channels for mUSD adoption.
Ultimately, three key drivers will determine mUSD’s trajectory: network effects from DeFi protocol and Mastercard integration, regulatory clarity reducing volatility, and user growth through the MetaMask Card’s potential to onboard millions into self-custodial finance.
Conclusion
MetaMask’s launch of mUSD represents a strategic shift in the stablecoin market, leveraging its 30 million monthly active users and wallet-native integration to address longstanding issues like fragmented experiences and limited real-world utility.
The timing aligns with regulatory frameworks like the GENIUS Act, positioning mUSD for compliance from the start, while its dual-network deployment on Ethereum and Linea balances security with scalability.
The MetaMask Card integration enabling direct spending at 150 million merchants worldwide bridges the crucial gap between crypto assets and everyday commerce.
Despite challenges including the modest $21.92 million initial circulation compared to incumbents, MetaMask’s built-in distribution advantages and seamless ecosystem integration create unprecedented conditions for disrupting the stablecoin oligopoly.
This wallet-native approach marks a new phase in the digital dollar competition, potentially democratizing stablecoin utility beyond crypto-native audiences.
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FAQs:
1. What is mUSD and how does it differ from other stablecoins?
mUSD is MetaMask’s wallet-native stablecoin, fully backed by cash and cash-equivalent assets. It’s integrated directly into the MetaMask wallet, offering seamless functionality across buying, selling, swapping, and bridging operations without leaving the wallet interface.
2. On which networks is mUSD available?
mUSD is initially available on two networks: Ethereum and Linea (MetaMask’s layer-2 network). This dual-network approach balances established infrastructure with next-generation scaling solutions.
3. How can I spend mUSD in the real world?
You can spend mUSD using the MetaMask Card, which allows for transactions at approximately 150 million merchants worldwide through a partnership with Mastercard. The card instantly converts mUSD into local currency at the point of sale.
4. What are the main challenges facing mUSD’s adoption?
The primary challenges for mUSD include overcoming liquidity hurdles in a market dominated by established stablecoins like USDT and USDC, and navigating evolving regulatory landscapes across different jurisdictions.
5. How does mUSD ensure regulatory compliance?
mUSD was launched in compliance with the GENIUS Act framework and is fully backed by high-quality, highly-liquid dollar equivalent assets. Regular compliance audits are conducted to maintain trust and adhere to regulatory standards.