MetaMask Launches mUSD Stablecoin on Ethereum & Linea

Published: 2025-08-22 13:58:36 |

MetaMask will launch its native stablecoin mUSD later this year on Ethereum and Linea. It will be issued via Bridge and powered by the decentralized M0 protocol, with each mUSD token backed 1:1 by U.S. dollar cash and short-term Treasuries. mUSD offers instant on-chain transparency and monthly public attestations of its reserves. Yields from these reserves flow back into MetaMask, enabling lower fees and smoother integrations for users. Integrated directly into the MetaMask wallet, mUSD supports minting, holding, trading and seamless cross-chain transfers. Traders can also spend mUSD via the MetaMask Card at Mastercard-accepting merchants by year-end. According to Bridge CEO Zach Abrams, issuance timelines have been cut from over a year to mere weeks. MetaMask aims to boost DeFi liquidity across lending markets, DEXs and custodial platforms, targeting over 100 million users amid global stablecoin volumes nearing $1 trillion and new U.S. payment stablecoin regulations under the GENIUS Act.

Neutral

As a dollar-pegged stablecoin, mUSD’s price is designed to remain stable at 1 USD. In the short term, traders can expect minimal price volatility but increased utility via faster issuance, lower fees and seamless cross-chain transfers. Over the long term, broad adoption through MetaMask’s 100 million-user target, DeFi integrations and card spending options may boost mUSD circulation and market activity. However, because its value is anchored to the U.S. dollar and supported by reserves, the price impact remains neutral.