MetaMask Rolls Out mUSD Stablecoin Powered by M0 and Bridge Enabling Real-World Spending and Cross-Chain Transfers

MetaMask Launches Native Stablecoin mUSD With Stripe-Backed Bridge And M0

MetaMask is stepping further into the stablecoin space with the launch of its own dollar-pegged token, MetaMask USD (mUSD).

The move positions the self-custodial wallet as the first major platform to integrate a native stablecoin directly within its interface, allowing users to hold, spend, and transact in a dollar-denominated asset across web3.

How Will mUSD Work Across Web3 And Payments

The token will initially roll out on Ethereum and Linea, an EVM-compatible layer-2 network developed by Consensys, MetaMask’s parent company.

Users can use mUSD to on-ramp fiat, swap between cryptocurrencies, transfer value across blockchains, and bridge assets without leaving the wallet.

By the end of the year, holders will also be able to spend mUSD at millions of merchants worldwide via the MetaMask Card, powered by Mastercard.

Gal Eldar, product lead at MetaMask, said,

“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. With MetaMask USD, users can bring their money onchain, put it to work, spend it almost anywhere, and use it like money should be used.”

Partnership With Bridge And M0 Simplifies Issuance

MetaMask is not issuing the stablecoin itself.

Instead, it has partnered with Bridge, recently acquired by payments giant Stripe for over \$1 billion, to manage regulatory compliance and reserve backing.

On-chain operations are powered by M0, a decentralised infrastructure platform designed for stablecoin liquidity.

The combination ensures mUSD is fully backed 1:1 with liquid dollar-equivalent assets while maintaining transparency.

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

“We reduced the development time for custom stablecoin issuance from more than a year of complex integrations to a matter of weeks. This means apps like MetaMask can realise benefits more rapidly and efficiently than ever before.”

mUSD Aims To Drive Adoption And DeFi Activity

Beyond payments, MetaMask intends for mUSD to become a foundational asset across decentralized finance.

The token’s integration is designed to support liquidity provisioning, on-ramping, and composability across DeFi protocols, boosting activity on Ethereum and Linea.

By embedding the stablecoin directly within the wallet, MetaMask hopes to lower barriers for new users entering the self-custodial ecosystem.

Stablecoin Launch Comes Amid Regulatory Clarity

The rollout coincides with new U.S. legislation, the GENIUS Act, which establishes a federal framework for payment stablecoins.

Signed into law on 18 July 2025, the act requires tokens to be fully backed by low-risk assets, including U.S. dollars, Treasury bills, or short-term instruments, and mandates independent audits of reserves.

Only authorised institutions can issue such stablecoins, ensuring greater oversight and consumer protection.

By leveraging Bridge’s compliance expertise and M0’s blockchain infrastructure, MetaMask can offer a native digital dollar without managing the complex technical and regulatory requirements internally.

As Luca Prosperi, M0 founder and CEO, explained:

“Applications want to control their dollar infrastructure. What is important is that they will not have to build it themselves.”

Could MetaMask Set A New Standard For Wallet-Integrated Stablecoins?

With the launch of mUSD, MetaMask joins a growing trend of application-specific stablecoins, similar to PayPal’s PYUSD or other branded digital dollars.

Its approach combines regulatory compliance, decentralised infrastructure, and direct wallet integration, aiming to simplify on-chain access for millions of users while offering real-world utility through the MetaMask Card.

The stablecoin is expected to roll out later in 2025, offering users a seamless bridge between traditional finance and web3, potentially setting a benchmark for wallet-native digital currencies.