MetaMask launches stablecoin MUSD. Announced on August 21, 2025, and going live on September 15, 2025, this new asset aims to bridge the gap between traditional fiat and the crypto world. As the world’s most popular self-custodial wallet with over 30 million users, MetaMask’s entry into stablecoins could democratize DeFi like never before.
What is Stablecoin MUSD and How Does It Work?
Stablecoin MUSD, or MetaMask USD, is a stablecoin pegged 1:1 to the US dollar, backed by high-quality, liquid assets for stability and transparency.
Initially built on Ethereum and Linea networks, it leverages cutting-edge infrastructure to ensure seamless integration within the MetaMask ecosystem. The launch stems from partnerships that enable onboarding fiat into crypto faster and more cost-effectively than ever.
Key features and partnerships include:
- Seamless Integration: Users can on-ramp fiat directly via Transak, swap, bridge across chains, and soon lend or earn yields through Aave, all without leaving the wallet.
- Real-World Spending: Upcoming MetaMask Card support will allow MUSD spending at over 150 million Mastercard merchants worldwide.
- Cross-Chain Capabilities: Powered by M0’s decentralized platform for real-time transparency and composability, with plans to expand to more networks.
- Strategic Collaborations: Teaming up with Bridge (from Stripe) for efficient issuance, Linea for enhanced liquidity on layer-2, and others to boost DeFi protocols.
This setup positions Stablecoin MUSD as a “core unit of account” in Web3, reducing friction and costs that have long plagued crypto adoption.
The Broader Impact on DeFi
The MetaMask launch of stablecoin MUSD isn’t just another token; it’s a strategic pivot toward making DeFi more accessible. By competing with giants like USDT and USDC, mUSD could drive billions in total value locked (TVL) into ecosystems like Linea.
Product Lead Gal Eldar noted that it cuts barriers, allowing users to “bring money on-chain, use it, spend it anywhere.” Meanwhile, M0 CEO Luca Prosperi highlighted how it empowers builders with top-tier stablecoin tools.
Early indicators show strong liquidity incentives and protocol integrations, potentially accelerating mainstream crypto use. However, as with any new stablecoin, proving long-term stability amid regulations will be key.
In summary, the MetaMask launch of stablecoin MUSD marks a pivotal shift, blending fiat reliability with DeFi innovation.
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