MetaMask, the company behind the eponymous wallet, has announced the launch of a dollar-backed stablecoin called MetaMask USD (mUSD), set to debut in 2025.
Launch of mUSD and its functionality
MetaMask announced the stablecoin mUSD, which will be issued by the Bridge platform, acquired by Stripe. mUSD will be integrated into the MetaMask wallet, allowing users to utilize it across Web3 applications. It will operate through the M0 liquidity network and be backed 1-to-1 with dollar-equivalent reserves.
Role in the DeFi ecosystem
The mUSD stablecoin is set to play a pivotal role in the DeFi ecosystem on the Linea platform. Developers described that integrating mUSD into the wallet features such as swaps, on-ramps, and bridges will enhance the user experience for those utilizing MetaMask for holding, trading, and spending their funds.
Regulatory conditions for stablecoins
The launch of mUSD comes amidst the signing of the GENIUS Act, which sets requirements for the issuance of stablecoins in the US. Signed by President Donald Trump, this law outlines who can issue stablecoins, how they must be backed, and what disclosures are required.
With the launch of mUSD, MetaMask aims to simplify the onboarding process for users into Web3, lowering barriers to entry and ensuring ease of use of the stablecoin within the DeFi ecosystem.
