MetaMask Breaks New Ground: Launches First Wallet-Native Stablecoin, MetaMask USD ($mUSD)
Guest article by Sumit Sagar
The crypto industry just witnessed a major milestone: MetaMask, the world’s most widely used self-custodial wallet, has launched its own native stablecoin — MetaMask USD ($mUSD).
This marks the first time a self-custodial wallet has issued a stablecoin, a move that could significantly reshape the stablecoin market, DeFi adoption, and the way millions of users interact with money on-chain.
The Rise of Stablecoins in Crypto
Stablecoins have become the backbone of crypto markets. They:
Facilitate over $1 trillion in on-chain volume every month.
Serve as the primary medium of exchange across DeFi, trading, and remittances.
Bridge traditional finance and decentralized economies.
While USDT and USDC dominate the market with a combined market cap exceeding $150B (as of mid-2025), most stablecoins are issued by centralized companies and accessed through exchanges or custodial wallets. MetaMask’s entry changes this equation.
Why MetaMask USD ($mUSD) Matters
MetaMask isn’t just another wallet — it’s the default portal to Web3, with over 30M monthly active users globally. By embedding a wallet-native stablecoin directly into its product ecosystem, MetaMask removes layers of friction for users who want to:
On-ramp dollars directly into their wallet.
Swap, lend, or stake without leaving the app.
Spend crypto like cash, thanks to the upcoming MetaMask Card (powered by Mastercard).
Key Features of $mUSD at Launch:
Chains: Ethereum + Linea (Consensys’ EVM-equivalent L2).
In-Wallet Utility: Onramps, swaps, transfers, and bridging.
Real-World Payments: Expected by end of 2025 via the MetaMask Card at millions of merchants.
Backed 1:1: By high-quality dollar-equivalent assets, with real-time transparency.
Built with: Bridge (a Stripe company) for issuance + M0 protocol for decentralized liquidity and cross-chain interoperability.
A New Model: Wallet-Native Stablecoins
MetaMask’s approach introduces a new category of stablecoin:
Wallet-Native – Directly integrated into MetaMask, making it the default dollar option for millions of users.
Self-Custodial – Unlike exchange-issued stablecoins, $mUSD is designed to live inside non-custodial wallets, keeping users in control.
Composable – Built on M0’s liquidity layer for cross-chain interoperability, ensuring utility across DeFi and payments.
This combination could reduce reliance on centralized exchanges and encourage more people to onboard directly into Web3 ecosystems.
Strategic Impact on DeFi & Crypto Adoption
1. Linea DeFi Boost
By launching on Linea, Consensys’ L2, MetaMask ensures $mUSD becomes a foundational liquidity asset for its DeFi ecosystem. Lending markets, DEXs, and yield protocols on Linea will likely adopt $mUSD as a core stable asset — boosting TVL (Total Value Locked) and network activity.
2. Regulatory Alignment
The launch comes right after the U.S. GENIUS Act, which provides the first federal framework for stablecoins. This positions MetaMask to benefit from regulatory clarity and build trust with both retail and institutional users.
3. Payments Expansion
With the MetaMask Card integration, stablecoins move beyond crypto trading and into real-world commerce. This could accelerate merchant adoption and make crypto truly spendable in daily life.
4. Competitive Pressure
Other wallets and DeFi platforms may follow suit, creating their own wallet-native stablecoins. This could decentralize the stablecoin market further, reducing over-reliance on centralized issuers like Tether and Circle.
Industry Reactions
Gal Eldar, Product Lead at MetaMask: “With MetaMask USD, users can bring their money onchain, put it to work, spend it almost anywhere, and use it like money should be used. We’re not just bringing people onchain. We’re building the reason they’ll never want to leave.”
Luca Prosperi, CEO of M0: “The current incarnation of stablecoin technology isn’t fit for purpose. With M0 + Bridge, MetaMask gets the most interoperable and liquid stablecoin stack.”
Zach Abrams, CEO of Bridge: “Issuing a custom stablecoin used to take more than a year. We reduced that to weeks, unlocking faster innovation.”
The Bigger Picture
MetaMask USD isn’t just another stablecoin. It’s the first wallet-native stablecoin with:
Regulatory compliance via Bridge.
Interoperability via M0.
Mass adoption potential via MetaMask’s 30M+ users.
If successful, this move could change the way people enter and use Web3, making stablecoins as accessible and functional as online banking apps today.
The next wave of crypto adoption may not be driven by speculation, but by utility and MetaMask USD could be the catalyst.