The crypto wallet MetaMask has announced the release of its own dollar-backed stablecoin, known as MetaMask USD (mUSD), to be launched this year.
What Will mUSD Be?
MetaMask USD (mUSD) will be issued by the Bridge platform, which was recently acquired by Stripe. It will be fully backed by dollar reserves and intended for use in various decentralized finance (DeFi) applications.
Goals and Functions of the New Stablecoin
mUSD will be integrated directly into the MetaMask wallet and designed for cross-chain use. According to Gal Eldar, product lead at MetaMask, the token aims to lower barriers for users entering Web3. It will also include functionalities for lending, trading, and spending cryptocurrency. The introduction of this new token is expected to enhance activity within the DeFi ecosystem on the Linea platform.
Launching Context and Integration with Other Projects
The launch of mUSD is scheduled for late 2025 on Ethereum and Linea, Consensys' Ethereum layer-2 network. This announcement comes in the wake of a new U.S. law signed by President Donald Trump establishing federal standards for dollar-backed stablecoins. MetaMask is also broadening its capabilities, having recently added native support for the Tron blockchain and expanding its offerings for other networks.
The launch of MetaMask USD promises to strengthen the company's position in the cryptocurrency market and improve user engagement with decentralized finance applications.
