TL;DR
- Launch: MetaMask introduces mUSD, a Stripe‑issued, dollar‑backed stablecoin debuting on Ethereum and Linea with full ecosystem integration.
- Utility: Planned use in MetaMask’s Mastercard debit card aims to extend mUSD from DeFi into real‑world payments.
- Regulation: Complies with GENIUS Act; no initial yield, but future incentive programs remain possible.
MetaMask has unveiled its first native stablecoin, mUSD, set to launch later this year on Ethereum and Linea, the layer‑2 network developed by its parent company, Consensys. Issued by Bridge, a Stripe subsidiary, mUSD will be fully backed 1:1 by dollar‑equivalent assets in compliance with the recently enacted GENIUS Act. This move makes MetaMask the first self-custodial wallet to launch its own integrated stablecoin.
Today, we're announcing MetaMask USD ($mUSD) – MetaMask's native stablecoin. 🦊
MetaMask is the first self custodial wallet to launch a stablecoin, and we have big plans for it. 🧵👇 pic.twitter.com/bbUqYGWXJw
— MetaMask.eth 🦊 (@MetaMask) August 21, 2025
Product Features and Integration
mUSD will be embedded across the MetaMask ecosystem, enabling seamless on‑ and off‑ramps between self‑custodied crypto and dollar‑pegged tokens. At launch, users will be able to transact with mUSD directly within the wallet on both Ethereum and Linea. By year‑end, the company plans to enable mUSD as a payment method for its upcoming Mastercard‑powered debit card, expanding its utility beyond DeFi into everyday purchases.
Competitive Positioning
Ajay Mittal, MetaMask’s VP of product strategy, said mUSD’s deep integration offers advantages over competitors’ “fragmented” experiences, potentially lowering costs and improving transaction flows. With millions of active users, the company aims for mUSD to become a core liquidity layer not only within its own ecosystem but across DeFi at large. The wallet’s established user base could give it a significant edge in adoption compared to newer entrants in the stablecoin market.
Regulatory Context and Issuance Model
While branded as MetaMask’s stablecoin, mUSD will not be issued by the company itself but by Stripe through Bridge. The GENIUS Act prohibits stablecoin issuers from offering yield directly to customers, though other companies can still provide rewards. Mittal confirmed mUSD will not initially offer yield but could feature in future incentive programs within the company. This structure mirrors approaches taken by firms like PayPal and Coinbase, which have leveraged third‑party issuance to navigate regulatory constraints.
Market Outlook
The launch comes amid rapid growth in the stablecoin sector, now federally recognized under U.S. law. By combining regulatory compliance, Stripe’s payment infrastructure, and MetaMask’s DeFi reach, mUSD could become a significant player in on‑chain liquidity. Its integration with a physical debit card also signals a push toward bridging crypto with traditional payment networks, potentially broadening mainstream adoption.
