MetaMask enters stablecoin scene with mUSD launch on Ethereum and Linea

MetaMask, the wide utilized self-custodial wallet, has revealed plans to motorboat its ain stablecoin, MetaMask USD (mUSD), aboriginal this year.

According to an Aug. 21 statement, mUSD volition initially debut connected Ethereum and Linea L2, wherever it volition go a cardinal constituent of Linea’s increasing DeFi ecosystem.

The task volition beryllium developed successful collaboration with Bridge, a Stripe-owned stablecoin issuer, and M0, a decentralized level providing on-chain liquidity infrastructure.

MetaMask’s mUSD

According to MetaMask, the stablecoin would beryllium afloat backed 1:1 with high-quality, highly liquid dollar equivalent assets.

The plus would besides beryllium integrated into large protocols, including lending platforms, decentralized exchanges, and custodial services. MetaMask expects these integrations to make deeper liquidity and summation its ecosystem’s full worth locked (TVL).

The wallet work supplier emphasized that its users tin leverage mUSD for seamless swaps, transfers, and bridging wrong the wallet, portion the MetaMask paper volition alteration real-life spending by the extremity of 2025.

Gal Eldar, MetaMask’s Product Lead, described the motorboat arsenic a measurement toward reducing barriers for radical entering the Web3 ecosystem. According to him, mUSD volition fto users bring their funds on-chain, marque them productive, and usage them wherever they want, thereby creating worth successful wallets and beyond.

Stablecoin ecosystem growth

The mUSD rollout coincides with a shifting regulatory situation successful the US regarding the $285 cardinal assemblage presently dominated by Tether’s USDT.

Crypto advisory steadfast Castle Labs pointed out that the caller support of the GENIUS Stablecoin Act has signaled a much supportive model for integer dollar alternatives. According to the firm, this authorities could accelerate the motorboat of caller stablecoins and promote existing projects to grow their on-chain presence.

However, contempt the increasing adoption of the nascent industry, stablecoins stay heavy concentrated connected centralized exchanges.

Considering this, Castle Labs noted that the semipermanent occurrence of immoderate stablecoin task would beryllium connected its liquidity, real-world usability, and integration crossed wallets and DeFi platforms.

The station MetaMask enters stablecoin country with mUSD motorboat connected Ethereum and Linea appeared archetypal connected CryptoSlate.