mUSD Incoming: MetaMask’s Bold Step Into the Stablecoin Arena

MetaMask, the widely used Ethereum wallet and gateway to decentralized applications, is expected to reveal details about its own U.S. dollar-pegged stablecoin as early as this week, according to a source familiar with the matter.

The new token, reportedly named mUSD, could go live by the end of the month if the rollout stays on schedule.

From proposal leak to imminent launch

Talk of an in-house MetaMask stablecoin first surfaced after a governance proposal mentioning mUSD briefly appeared online last week before being deleted.

While the wallet provider has not officially confirmed plans, the leaked document indicated that the launch would follow shortly after an announcement, a timeline that now appears to be in motion.

MetaMask, which says it serves over 30 million active monthly users, is developing mUSD with the assistance of Bridge, a firm acquired by Stripe earlier this year that specializes in integrating stablecoin payment systems, and M^0, a stablecoin issuance protocol.

In addition, alternative asset manager Blackstone is reportedly providing custody and treasury services for the upcoming token. Neither MetaMask nor M^0 has commented publicly on the project, and Blackstone and Bridge have yet to issue responses.

Strategic shift toward yield-generating assets

For MetaMask, launching a stablecoin could serve both user utility and corporate strategy. Many large crypto platforms already hold reserves in major stablecoins such as Tether’s USDT and Circle’s USDC.

These reserves often generate yield from low-risk, short-term instruments like the U.S. Treasuries. Issuing a proprietary stablecoin could allow MetaMask to capture a portion of that yield directly.

Stablecoins have become central to blockchain transactions, offering a price-stable medium of exchange in volatile markets. If mUSD follows the path of other leading dollar-pegged assets, it may be integrated into DeFi protocols, used for payments, or serve as collateral in lending platforms.

The move also comes amid broader competition in the stablecoin market, with payments giants and decentralized platforms alike entering the space. Whether mUSD will primarily serve MetaMask’s ecosystem or seek adoption beyond it remains to be seen.

If the announcement does take place this week, it would mark a notable expansion of MetaMask’s role in the crypto economy, moving from facilitating transactions to issuing a digital asset of its own.

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