MetaMask Unveils mUSD Stablecoin Backed by U.S. Treasuries

MetaMask, the Ethereum-based wallet developed by Consensys, has officially introduced its own native stablecoin, MetaMask USD (mUSD), marking the company’s entry into digital dollar issuance.

Issued via Stripe-owned Bridge

The new token will be issued by Bridge, a stablecoin platform owned by Stripe, and minted through M0’s decentralized infrastructure. MetaMask confirmed that each mUSD will be backed 1:1 by “high-quality, highly liquid dollar-equivalent assets” such as U.S. cash and short-duration Treasuries.

Ajay Mittal, MetaMask’s vice president of product strategy, said the structure not only provides full backing but also generates yield. “That yield enables us to improve the user experience across the stack – from potentially lowering costs to seamless integrations,” he explained.

Designed for DeFi and beyond

mUSD is positioned as the first stablecoin launched by a self-custodial wallet, which MetaMask says will serve as the default digital dollar across its ecosystem. The token will operate on Ethereum and Linea, MetaMask’s layer-2 network.

Mittal added that the stablecoin aims to deliver better incentives for users by enhancing DeFi activity such as ramping, bridging, swapping, and spending. Over time, the company may also introduce reward mechanisms to encourage adoption.

Integration with payments

Beyond DeFi, MetaMask has plans to link mUSD with real-world payment systems. By year-end, the company expects the stablecoin to be spendable through the MetaMask Card, enabling payments at merchants worldwide that accept Mastercard.

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This could position mUSD as more than just another DeFi utility token, extending its reach into everyday transactions while maintaining transparency and composability through M0’s liquidity network.

Governance and rollout

The mUSD token first surfaced earlier this month through a prematurely posted governance proposal, which was quickly removed. The official unveiling now confirms a broader strategy to make MetaMask a central hub for stablecoin use within decentralized finance.

By introducing a native digital dollar fully backed by U.S. assets, MetaMask joins a growing field of stablecoin issuers while attempting to differentiate itself with self-custody, cross-chain support, and direct consumer payment integration.