MetaMask to Launch Native Stablecoin mUSD

MetaMask is introducing its own stablecoin, MetaMask USD (mUSD), marking the first time a self-custodial crypto wallet has launched a native digital dollar.

MetaMask, the widely used self-custodial wallet developed by Consensys, has confirmed plans to roll out MetaMask USD (mUSD)—a new stablecoin designed to function seamlessly within its ecosystem. The move positions MetaMask not only as a gateway to decentralized finance (DeFi) but also as a direct competitor in the fast-expanding stablecoin market.

Today, we're announcing MetaMask USD ($mUSD) – MetaMask's native stablecoin. 🦊

MetaMask is the first self custodial wallet to launch a stablecoin, and we have big plans for it. 🧵👇 pic.twitter.com/bbUqYGWXJw
— MetaMask.eth 🦊 (@MetaMask) August 21, 2025

A First for Self-Custodial Wallets

While centralized players like PayPal and exchanges such as Binance have launched their own digital dollars, mUSD will be the first stablecoin issued directly by a self-custodial wallet provider. This step reinforces MetaMask’s strategy of enabling users to manage, trade, and spend their assets entirely within its ecosystem while retaining full control of their private keys.

Speculation about the stablecoin’s release circulated last week after a governance proposal briefly appeared online before being withdrawn. Consensys has now confirmed the development, positioning mUSD as a centerpiece of its long-term DeFi strategy.

Stablecoin Demand Reaches New Heights

The launch comes amid surging global demand for stablecoins, which have become integral to the crypto economy. They are used for trading, cross-border remittances, lending, and payments, moving nearly $1 trillion in monthly on-chain volume.

The timing also aligns with improving regulatory clarity in the United States, following the passage of the GENIUS Act, which has helped boost market confidence in dollar-pegged digital assets. By introducing mUSD, MetaMask aims to capitalize on this environment by offering a self-custodial, wallet-native stablecoin that integrates tightly with its core infrastructure.

How mUSD Will Work

At launch, MetaMask USD will serve two main functions:

Inside the wallet: Users will be able to access seamless onramps, perform swaps, transfer assets, and bridge across chains using mUSD.
In the real world: By the end of 2025, the stablecoin is expected to be spendable at millions of merchants worldwide through the MetaMask Card, which will operate on the Mastercard network.

This dual utility places mUSD in a unique position, connecting DeFi services with everyday financial transactions.

“MetaMask USD is a critical step in bringing the world onchain. By integrating natively into MetaMask’s product offering, it will allow us to cut through some of the most stubborn barriers in web3 and reduce both friction and costs for people onboarding directly into a self-custodial wallet,” said Gal Eldar, Product Lead at MetaMask.

Integration with Ethereum and Linea

The new token will initially be deployed on Ethereum and Linea, Consensys’ Layer 2 network. Within Linea’s ecosystem, mUSD is expected to play a foundational role in building liquidity and driving adoption, strengthening the network’s DeFi infrastructure.

MetaMask has confirmed that mUSD will be integrated across its suite of decentralized applications and DeFi protocols, enabling direct stablecoin utility for lending, trading, and liquidity provision. By embedding these services into its wallet, MetaMask hopes to simplify the onboarding process for millions of users who rely on stablecoins as their entry point into crypto.

Expanding Beyond Crypto

The introduction of mUSD is also a strategic step toward mainstream adoption. By pairing its stablecoin with the MetaMask Card, the wallet bridges the gap between digital assets and real-world payments, allowing users to spend their crypto just like fiat currency.

This approach mirrors a broader industry push to integrate blockchain-based money into traditional finance and consumer spending habits. However, by tying this functionality directly to a self-custodial wallet, MetaMask differentiates itself from centralized services, appealing to users who prioritize control and privacy.

Implications for DeFi and the Wider Market

The move places MetaMask at the intersection of stablecoin adoption, DeFi expansion, and consumer payments. For the broader ecosystem, the launch of mUSD could:

Encourage wider use of stablecoins in cross-chain applications.
Provide a native liquidity base for Ethereum and Linea DeFi protocols.
Reduce friction for newcomers, who can onboard directly into a stablecoin without leaving MetaMask.
Push forward the integration of Web3 with everyday commerce.

If successful, mUSD could serve as a template for other self-custodial wallets exploring ways to combine stablecoin infrastructure with direct financial utility.

A Defining Step for MetaMask

With tens of millions of active users, MetaMask is already a central hub for DeFi and Web3 activity. The launch of mUSD deepens its role by making the wallet not just a portal for interacting with crypto but also a provider of money that can be earned, saved, and spent seamlessly within the same platform.

As Eldar emphasized, MetaMask is not only bringing more people onchain—it is creating incentives for them to stay. Whether mUSD can compete with established stablecoins like USDT and USDC remains to be seen, but its unique positioning within the world’s most popular self-custodial wallet could give it a decisive advantage.

By anchoring its ecosystem with a native stablecoin, MetaMask is betting that the next wave of crypto adoption will be driven by frictionless, user-owned financial tools that bridge DeFi with the real economy.