MetaMask, the widely used Ethereum wallet, is preparing to enter the stablecoin market with its own U.S. dollar–pegged token, mUSD, potentially launching before the end of August. The move would place MetaMask in direct competition with leading stablecoin issuers such as Tether (USDT) and Circle (USDC), signalling the wallet’s expansion beyond its role as a gateway to decentralised applications.
The plan came to light after a governance proposal mentioning mUSD briefly appeared online last week before being removed. According to a source familiar with the matter, MetaMask could make an official announcement within days, with the stablecoin going live shortly after.
The launch is being developed in collaboration with multiple partners. Bridge, a payments platform acquired earlier this year by Stripe, is integrating systems to enable seamless mUSD payments. Stablecoin protocol M^0 will oversee the issuance process, ensuring the token’s peg is maintained. Blackstone, one of the world’s largest alternative asset managers, is expected to handle custody and treasury operations, managing the reserves that will back the coin.
Stablecoins are typically backed by highly liquid assets such as short-term U.S. Treasury bonds, which generate yields for their issuers. If MetaMask follows this model, mUSD could serve as both a convenience for users and a new revenue stream for the company. This aligns with MetaMask’s stated aim of creating a product that facilitates faster, easier transactions while maintaining long-term sustainability.
If all goes according to schedule, mUSD will debut in the MetaMask ecosystem before the end of the month, marking a significant milestone for one of Ethereum’s most recognised platforms and potentially reshaping how its users interact with digital assets.
