MetaMask Launches Dollar-Pegged Stablecoin mUSD

MetaMask has launched MetaMask USD (mUSD), a dollar-pegged stablecoin that integrates directly into the popular crypto wallet's ecosystem, marking the company's entry into the competitive stablecoin market.

The stablecoin launched September 15 on Ethereum and Linea, MetaMask's layer-2 network, with full backing by cash and cash-equivalent assets. Bridge, a licensed entity, serves as the issuer and manages reserves under regulatory oversight.

mUSD is built using the M0 protocol and offers seamless integration within MetaMask's wallet interface for swaps, transfers, and bridging operations. Users can purchase mUSD directly through the wallet using credit cards, bank transfers, Apple Pay, Google Pay, or PayPal, with tokens delivered straight to their wallets.

The stablecoin will integrate with the MetaMask Card, enabling spending at over 150 million merchants worldwide that accept Mastercard. MetaMask positioned mUSD as the default stablecoin on its Linea network, aiming to capture transaction volume within its ecosystem.

Crowded Space

MetaMask's entry into stablecoins comes as the sector has become increasingly profitable, with Tether reporting over $4.9 billion in earnings during Q2 2025 alone. The market is dominated by established players including USDT, USDC, and newer entrants like PayPal's PYUSD.

The wallet provider's competitive advantage lies in its massive user base of over 30 million monthly active users and native integration capabilities. However, mUSD faces the challenge of competing against deeply entrenched stablecoins that already have extensive liquidity and institutional adoption.

MetaMask, created by ConsenSys in 2016, has evolved from a simple Ethereum browser extension into the most widely used self-custodial crypto wallet. The platform supports multiple blockchains and offers features including token swaps, NFT management, and DeFi access.

The stablecoin launch represents a logical expansion for MetaMask as it seeks to monetize its large user base and reduce dependence on external stablecoin providers. Success will largely depend on the company's ability to drive adoption within its ecosystem and establish sufficient liquidity across trading pairs.

mUSD enters a market where competition increasingly focuses on user experience, compliance, and integration capabilities rather than just backing mechanisms. The wallet-native approach could provide MetaMask with a meaningful differentiation, though broader ecosystem adoption will be crucial for long-term success.