Stacy Pereira
- Reports suggest that MetaMask is likely to unveil its own U.S. dollar-pegged stablecoin, mUSD.
- To support mUSD, MetaMask has partnerships with Bridge and M^0 that can facilitate its adoption.
- MetaMask is reportedly in talks with Blackstone for custody and treasury management.
According to multiple media reports, Ethereum wallet, MetaMask, is said to be preparing its own U.S. dollar-pegged stablecoin, dubbed ‘mUSD’. The launch could be as early as this week, and the token is expected to go live by the end of August.
This initiative follows a prematurely posted governance proposal that was quickly taken down. The draft suggested mUSD will serve as the ecosystem’s “cornerstone asset,” acting as a highly liquid, neutral base currency. The stablecoin will then be integrated across MetaMask’s core features like Wallet, Swap, Buy/Sell, and Earn.
Strategic institutional partnerships
To bring mUSD to life, MetaMask has enlisted several strategic partners. It is collaborating with Bridge, the stablecoin payments infrastructure firm acquired by Stripe earlier this year, as well as M^0, a stablecoin issuance protocol. Reports also suggest that Metamask may be looking at tapping Blackstone to provide custody and treasury-management services.
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Competitive revenue strategy
By issuing mUSD, MetaMask, which boasts over 30 million monthly active users, can directly capture the yield generated by underlying assets. MetaMask’s existing partnerships could facilitate the success of mUSD. Its integration with Aave’s lending pools, for example, enables users to earn yield directly within the MetaMask app. This would enable seamless adoption of mUSD into lending-and-earn services.
The timings for the launch of mUSD coincide with the regulatory shift in the U.S., following the enactment of the GENIUS Act, the first federal legislation to establish rules for stablecoins. Under the new law, stablecoins must be backed 1:1 by top-tier liquid assets such as U.S. Treasury bonds, undergo monthly public audits, and fully comply with anti-money laundering and know-your-customer regulations.
