MetaMask USD (ticker: $mUSD) is a U.S. dollar-pegged stablecoin developed for the MetaMask ecosystem. It is the first native stablecoin to be launched by a self-custodial cryptocurrency wallet and is designed for deep integration across decentralized applications (dapps) and decentralized finance (DeFi) protocols. The stablecoin officially launched on September 15, 2025. ^{[7] [8]}

Overview

MetaMask USD was developed by Consensys, the software company behind the MetaMask wallet, which serves over 100 million users annually. ^[4] The stablecoin is issued by Bridge, a subsidiary of the financial technology company Stripe, and its on-chain functions are powered by M0, a decentralized stablecoin infrastructure platform. ^{[3] [5] [8]}

The primary goal of $mUSD is to provide a seamless, dollar-denominated experience for holding, spending, and transacting within the web3 environment, directly from the MetaMask wallet. It aims to reduce friction and costs for users onboarding into self-custody and DeFi. ^{[1] [3]}

The stablecoin is designed to be a neutral, highly liquid asset that facilitates 1:1 fiat-to-crypto onboarding for certain payment methods. Its introduction is intended to enhance the user experience for common wallet activities such as on-ramping, trading, lending, and spending. The launch of $mUSD occurred during a period of growing stablecoin adoption and increasing regulatory clarity in the United States, notably following the passage of the GENIUS Act, which established a federal framework for regulating payment stablecoins. ^{[1] [2]}

Gal Eldar, Product Lead at MetaMask, stated that the stablecoin is intended to address significant barriers in web3.

"It will allow us to cut through some of the most stubborn barriers in [web3] - (https://iq.wiki/wiki/web3) and reduce both friction and costs for people onboarding directly into a self-custodial wallet. With [[MetaMask] - (https://iq.wiki/wiki/metamask)] - (https://iq.wiki/wiki/metamask) USD, users can bring their money onchain, put it to work, spend it almost anywhere, and use it like money should be used." ^{[1] [5]}

History

MetaMask USD officially went live on September 15, 2025, marking the popular crypto wallet's entry into the stablecoin market. ^{[7] [8]} On its launch day, the stablecoin's circulating supply reached approximately $18 million. ^[8]

The project was first formally announced on August 21, 2025. Prior to the official announcement, speculation about the development of $mUSD had emerged after a governance proposal detailing the stablecoin was briefly published online before being removed. ^{[2] [6]}

The initial rollout of MetaMask USD occurred on the Ethereum mainnet and Linea, a Layer 2 network developed by Consensys. The project aims to establish $mUSD as a foundational component of the growing DeFi ecosystem on the Linea network. ^[1]

Technology & Issuance

MetaMask USD's architecture is built upon a partnership between three key entities: Consensys (the developer of MetaMask), Bridge (the issuer), and M0 (the infrastructure provider). This collaboration combines regulatory compliance, transparent reserve management, and decentralized interoperability. ^[1]

Issuance and Reserve Management

The issuance of $mUSD is managed by Bridge, a Stripe company that provides a stablecoin orchestration and issuance platform. Bridge is responsible for ensuring regulatory compliance, providing ongoing monitoring, and managing the reserves that back the stablecoin. According to the announcement, $mUSD is fully backed on a 1:1 basis by high-quality, highly liquid U.S. dollar-equivalent assets, including cash and U.S. Treasuries. ^{[6] [8]}

Zach Abrams, co-founder and CEO of Bridge, highlighted the efficiency of their platform:

"Issuing a custom stablecoin used to take more than a year of complex integrations. With our issuance technology, we’ve reduced that timeline to a matter of weeks." ^{[1] [5]}

On-chain Infrastructure

The on-chain minting and cross-chain functionality of $mUSD are powered by the M0 protocol. M0 is a decentralized platform designed to support the creation of interoperable and composable stablecoins. By utilizing M0, MetaMask USD is built for cross-chain use via the M0 liquidity network, which aligns with MetaMask's goal of providing a multi-chain wallet experience.

Luca Prosperi, Co-founder and CEO of M0, explained the platform's value proposition:

"We want to empower the builders of great crypto products to truly control the digital dollar stack they utilize in order to deliver the best end-user experience." ^[5]

Tokenomics

As a stablecoin, the core economic principle of MetaMask USD is to maintain a stable value pegged at 1:1 with the U.S. dollar. This peg is maintained through a full-reserve model, where each $mUSD token in circulation is backed by an equivalent amount of assets held in reserve.

These reserves, managed by Bridge, consist of high-quality and highly liquid assets denominated in U.S. dollars, such as cash and U.S. Treasuries. The model is designed to ensure that users can redeem their $mUSD for its equivalent value in fiat currency, providing stability and trust in the asset. The platform aims to offer real-time transparency regarding its reserves. ^{[1] [6]}

Revenue Model

Unlike many stablecoins where the issuer retains all the yield generated from the underlying reserves, the $mUSD model includes a revenue-sharing component for Consensys. A portion of the yield generated from the cash and U.S. Treasuries backing $mUSD will be directed to MetaMask. This creates a new revenue stream for the wallet provider, which can be used to fund ongoing development and improve user features. ^[6]

Ajay Mittal, vice president of product strategy at MetaMask, confirmed this model:

"MetaMask will benefit from the yield that backs mUSD. A portion of that supports MetaMask , helping us keep improving the wallet and building better features for users." ^[6]

This approach mirrors the highly profitable model used by major stablecoin issuers like Tether, which generated billions in profits from its treasury holdings. ^[6]

Use Cases & Ecosystem Integration

MetaMask USD is designed to be deeply integrated into the MetaMask wallet and its broader ecosystem, serving both on-chain and real-world financial activities. ^[2] According to Ajay Mittal, the tight integration aims to provide "potentially lower cost, greater composability across the stack, and a seamless way to ramp, swap, bridge, and spend." ^[6]

In-Wallet and DeFi Functionality

Following its launch, $mUSD is available for several core functions directly within the MetaMask wallet:

• On-ramps: Facilitating the conversion of fiat currency into crypto.
• Swaps: Trading $mUSD for other cryptocurrencies.
• Transfers: Sending the stablecoin to other wallet addresses.
• Bridging: Moving $mUSD across different blockchain networks.

The stablecoin initially launched on Ethereum and Linea. On Linea, $mUSD is positioned to become a key asset within its DeFi ecosystem. Plans include integrating the stablecoin into core protocols such as lending markets, decentralized exchanges, and custodial platforms to help build deep liquidity and drive network activity and Total Value Locked (TVL) growth. ^[1]

Real-World Payments

MetaMask plans to extend the utility of $mUSD to real-world commerce. By the end of 2025, users are expected to be able to spend their $mUSD holdings via the MetaMask Card. This card will be linked to the Mastercard network, enabling payments at millions of merchant locations worldwide that accept Mastercard. This integration represents a significant step in bridging the gap between decentralized digital assets and traditional payment systems. ^{[1] [2]}

Market Context and Competition

MetaMask USD enters a rapidly growing and competitive stablecoin market. By August 2025, the total market capitalization of stablecoins had exceeded $278 billion. Industry analysts project significant future growth, with some predicting the market could reach between $2.5 trillion and $3.7 trillion within five years. The launch comes at a time of increasing institutional interest and clearer regulatory frameworks, which are expected to fuel further adoption. ^[6]

The market is currently dominated by established players like Tether (USDT) and Circle (USDC). MetaMask aims to differentiate $mUSD through its native integration within its widely used wallet, potentially offering a more seamless user experience and lower friction for its millions of users compared to third-party stablecoins. ^{[6] [7]} The launch of mUSD coincided with other developments in the space, including plans from Tether to launch a U.S.-compliant stablecoin and efforts by traditional banks to explore tokenized dollars. ^[8]

MetaMask Rewards Program

On October 6, 2025, MetaMask announced a rewards program ahead of its anticipated token launch. The program's first season is set to distribute over $30 million in incentives to users. The initiative is designed to compensate users for their regular on-chain activity and provide long-term community benefits. ^[9]

The rewards will include referral bonuses, incentives in the company's mUSD stablecoin, partner rewards, and token access. Notably, the rewards will feature LINEA tokens from Linea, the Ethereum layer-2 network also developed by Consensys. ^[9]

Consensys founder and CEO Joe Lubin described the program as a step toward a larger evolution for the platform.

"MetaMask is building the future of personal finance. We’re designing an experience that rewards people for how they already use MetaMask through meaningful incentives, perks, and referrals. This is just the first step toward a much larger evolution, one that deepens how MetaMask connects, empowers, and rewards its community." ^[9]

The program is directly connected to the forthcoming MetaMask token. Lubin emphasized that long-time users would receive special benefits through both the rewards program and the future token generation event. Following the announcement, MetaMask planned to roll out full details of the program in the coming weeks. ^[9]

Partnerships

The creation and operation of MetaMask USD rely on a strategic partnership between three organizations, each contributing a specialized component to the project.

• Consensys: As the developer of MetaMask and the Linea network, Consensys provides the core user-facing platform and the initial blockchain ecosystems where $mUSD was deployed.
• Bridge (a Stripe company): Bridge serves as the official issuer of $mUSD. Its role encompasses managing the legal and regulatory compliance aspects of issuance, overseeing the asset reserves that back the stablecoin, and providing the orchestration technology for minting and redemption.
• M0: M0 provides the underlying decentralized protocol for the stablecoin. Its infrastructure enables the on-chain minting of $mUSD and is designed to ensure interoperability and composability across multiple blockchain networks.

This collaborative structure allows MetaMask to offer a native stablecoin while leveraging the specialized expertise of partners in financial technology, compliance, and decentralized infrastructure. ^{[1] [4]}