MetaMask, the world’s leading self-custodial wallet has officially announced the launch of its first native stablecoin, MetaMask USD ($mUSD). This initiative, revealed on August 21, 2025, comes as MetaMask steps into the role of stablecoin issuer, reshaping the way users interact with digital assets and payments across the web3 ecosystem.

Image Source: Metamask

What Makes $mUSD Truly Unique?

$mUSD is the first stablecoin seamlessly woven into the fabric of a self-custodial wallet. MetaMask’s integration ensures that users can hold, send, spend, and bridge dollar-pegged value directly from their wallets. The token launches initially on both Ethereum and Linea, MetaMask’s own layer-2 network, setting the stage for deep DeFi engagement and effortless cross-chain transfers.

Issued by Bridge, a Stripe-owned stablecoin platform, and powered by decentralized infrastructure M0, every $mUSD is backed 1:1 by high-quality, highly liquid U.S. dollar-equivalent assets such as cash and short-term Treasuries. This full backing delivers not only trust and transparency for users, but also a new yield-sharing model: MetaMask plans to distribute passive income to users drawing from treasury reserves. 

The Regulatory Wake-Up

MetaMask’s timing couldn’t be more strategic. Rumblings in Washington recently led to the GENIUS Act, which sets forth the first official U.S. framework for stablecoin regulation. With regulatory clarity, institutional investment, and a skyrocketing stablecoin market ($278 billion in 2025, projected to reach $750 billion by 2026), MetaMask is stepping in as a trusted, compliant alternative for dollar-denominated payments in DeFi and beyond.

User Experience:

At its core, $mUSD is designed to break down some of web3’s most persistent barriers. Here’s what users can expect:

1. Dollar-Denominated Simplicity: No need to worry about volatile crypto conversions. All core wallet activities, on-ramping, bridging, swapping, and spending can be handled in digital dollars.

2. Spendability: Coming soon, the MetaMask Card will let $mUSD holders pay at millions of Mastercard merchants worldwide, making crypto spending as straightforward as using a debit card.

3. DeFi Integration: Whether users want to borrow, lend, trade, or save, $mUSD is optimized for DeFi protocols, streamlining liquidity while keeping security and compliance front of mind.

4. Transparency and Trust: With regular audits, public attestations of reserves, and compliance baked in, MetaMask positions $mUSD as an institutional-grade alternative to black-box stablecoins.

A Leap Forward

For the MetaMask team, the mission is bold yet simple: “With MetaMask USD, users can bring their money onchain, put it to work, spend it almost anywhere, and use it like money should be used,” said Gal Eldar, MetaMask’s product lead. From the first self-custodial wallet to issue its own digital dollar, to seamless cross-network interoperability, MetaMask is betting on a future where crypto finance is just as effortless as traditional banking.

Final Thoughts

MetaMask’s unveiling of $mUSD marks a pivotal moment for decentralized wallets and stablecoin markets alike. By integrating dollar-backed stability with the security and empowerment of self-custody, MetaMask is shaping the norms of financial freedom, transparency, and utility for tomorrow.