MetaMask Prepares to Launch New Stablecoin This Week

MetaMask is set to dip its toes into an increasingly hot stablecoin market by launching its own U.S. dollar-pegged token, mUSD. The Ethereum wallet provider may announce the plan as early as Thursday, with a complete rollout by the end of the month. The decision represents a wider change toward MetaMask being a crypto gateway to a full-scale financial platform.

Stablecoin Built for Yield and User Retention

MetaMask aims to position mUSD as a competitive alternative to dominant tokens like USDT and USDC. The company plans to capture yield from reserve assets such as short-term U.S. Treasuries, a revenue stream that leading issuers currently retain for themselves. By keeping these returns within its ecosystem, MetaMask hopes to enhance user loyalty and strengthen its position in the market.

Notably, this emergence comes as the global stablecoin market is poised to reach a $280 billion mark. Standard Chartered analysts predict that it may increase to 750 billion by 2026. The overall positive U.S. regulations, such as the recent GENIUS Act, also fuel the interest of large financial institutions in exploring stablecoins.

Partnerships and Infrastructure for Scale

MetaMask is building mUSD in collaboration with several high-profile partners. Payment processor Stripe will provide integration support through its recently acquired platform, Bridge, enabling seamless fiat compatibility. Decentralized protocol M^0 will manage the token’s issuance and peg stability, while Blackstone will oversee custody and treasury operations.

This combination of technical, payment, and institutional finance expertise aims to ensure regulatory compliance and investor confidence. Consequently, mUSD could launch with a level of trust and operational readiness that many early stablecoins lacked.

Wallets Becoming Financial Powerhouses

The introduction of mUSD reflects a broader industry trend where digital wallets evolve into multi-service financial hubs. Beyond token storage, these platforms now handle lending, staking, and payments. MetaMask already integrates with Aave to provide yield opportunities for USDC, USDT, and DAI directly through its mobile app.

Additionally, the company recently expanded its off-ramp services to ten more networks, including Arbitrum, Base, and Polygon. These upgrades allow users to convert digital assets to fiat quickly and across multiple blockchains.