MetaMask Launches mUSD, A New Crypto Stablecoin
MetaMask, the widely used crypto wallet, has officially introduced MetaMask USD (mUSD), a U.S. dollar-pegged stablecoin that marks its entry into the highly competitive stablecoin sector.
Launched on September 15 across Ethereum and Linea (MetaMask’s layer-2 network), mUSD is fully backed by cash and cash-equivalent reserves. The token is issued by Bridge, a licensed entity that manages reserves under regulatory oversight.
Built on the M0 protocol, mUSD integrates seamlessly into the MetaMask wallet interface, enabling smooth swaps, transfers, and bridging. Users can directly purchase mUSD within the wallet using credit cards, bank transfers, Apple Pay, Google Pay, or PayPal, with tokens delivered instantly to their wallets.
The stablecoin will also connect to the MetaMask Card, supporting payments at more than 150 million merchants worldwide that accept Mastercard. Furthermore, MetaMask has positioned mUSD as the default stablecoin on Linea, aiming to capture transaction volume within its ecosystem.
Still, mUSD enters a highly competitive market. Tether (USDT) alone reported over $4.9 billion in profit in Q2 2025, while USDC and PayPal’s PYUSD are firmly entrenched players.
MetaMask’s competitive edge lies in its massive base of 30 million monthly active users and its native wallet integration. However, mUSD must compete with established stablecoins that already enjoy deep liquidity and institutional adoption.
Created by ConsenSys in 2016, MetaMask has evolved from a simple Ethereum browser extension into the most widely used self-custodial crypto wallet, supporting multiple blockchains and offering features like token swaps, NFT management, and DeFi access.
The launch of mUSD is seen as a natural step for MetaMask, allowing it to monetize its user base while reducing reliance on external stablecoin providers. Its success will depend on adoption within the ecosystem and the ability to establish strong liquidity across trading pairs.
As the stablecoin market shifts toward competition based on user experience, compliance, and integration, MetaMask’s wallet-native strategy could provide a meaningful edge. Yet, broad adoption across the wider crypto landscape will be critical for long-term success.
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