MetaMask Launches mUSD Stablecoin with Blackstone & Stripe Bridge
MetaMask will launch its 1:1 USD-backed mUSD stablecoin by end-August 2025, partnering with Blackstone for reserve custody and treasury management and Stripe’s Bridge for fiat on/off-ramps. Governance and minting are handled by the M^0 protocol, while reserves are invested in short-term US Treasuries to generate yield. Operating under the US GENIUS Act, mUSD will feature monthly audits, KYC/AML compliance and full high-quality liquid asset backing. Integrated directly into the MetaMask wallet, mUSD stablecoin aims to offer traders lower fees, stable liquidity, and a regulated alternative to USDT and USDC, boosting competition and liquidity on the Ethereum network.
Neutral
The launch of the mUSD stablecoin is unlikely to drive significant price volatility since stablecoins are designed to maintain a $1 peg. In the short term, mUSD’s compliance under the GENIUS Act and integration into MetaMask should enhance liquidity and ease of use for traders. Over the long term, institutional backing by Blackstone and robust rails via Stripe Bridge could bolster market confidence and increase adoption in DeFi, supporting network activity without affecting the stablecoin’s price.