MetaMask Prepares to Launch Dollar-Pegged Stablecoin mUSD on Ethereum and Linea

MetaMask, the world’s most widely used Ethereum wallet provider, is introducing its own stablecoin pegged 1:1 to the U.S. dollar. The token, named MetaMask USD (mUSD), is expected to go live by the end of August 2025, according to sources familiar with the matter.

The stablecoin project involves a network of major partners across payments, issuance, and treasury management. Bridge, a stablecoin payments facilitator acquired by Stripe for $1.1 billion in 2024, has been assigned to provide payment processing technology.

MetaMask has also partnered with M^0, a stablecoin issuance protocol, to supply the technical infrastructure behind the token. M^0 specializes in decentralized stablecoin systems and will handle the issuance mechanics of mUSD. For custody and treasury operations, Blackstone has been brought on board, adding institutional oversight to the project’s reserves.

The mUSD stablecoin will be backed 1:1 with dollar-equivalent assets. Transparency measures will allow real-time visibility into reserves, in line with current market expectations for stablecoin issuers.

MetaMask has confirmed that mUSD will integrate directly into its wallet ecosystem, a move that follows its recent Expansion Beyond Ethereum With the Latest Tron Integration. The token’s primary use case is payments, with plans for it to be fully compatible with the upcoming MetaMask Card. By year-end, users will be able to spend mUSD across Mastercard’s entire global merchant network.

Luca Prosperi, co-founder and CEO of M^0, noted that the infrastructure allows projects to control the digital dollar stack without extended integration timelines. Similarly, Bridge co-founder Zach Abrams explained that issuance now requires weeks instead of over a year of technical work.

The rollout comes as stablecoins continue to gain regulatory and institutional traction. The U.S. Congress recently the GENIUS Act, which provides a framework for tokens tied to the U.S. dollar. Large financial institutions, including JPMorgan Chase and Bank of America, are exploring stablecoin initiatives of their own.

Market data shows the current stablecoin sector is valued at $280 billion. Analysts at Standard Chartered project this could expand to $750 billion by 2026. Circle’s recent public listing further highlighted investor demand, with its shares climbing nearly 675% shortly after debuting.