What is MetaMask USD (mUSD)?

Deep Dive

1. Purpose & Value Proposition

mUSD aims to simplify crypto adoption by unifying on-ramps, swaps, and spending within MetaMask’s interface. As the first stablecoin issued by a self-custodial wallet, it eliminates the need to import external stablecoins like USDT or USDC, reducing friction for users and developers (MetaMask).

2. Technology & Backing

Powered by the M0 protocol and issued by Bridge (a Stripe-regulated entity), mUSD is backed 1:1 by short-term U.S. Treasury bills held in regulated custody. This structure ensures compliance with U.S. financial regulations while enabling transparency through planned audits (CCN).

3. Ecosystem Integration

• Linea Layer-2 Focus: Prioritized liquidity on MetaMask’s Ethereum Layer-2 chain to reduce gas fees.
• MetaMask Card: Direct spending at Mastercard merchants, with rewards programs incentivizing mUSD adoption.
• DeFi Compatibility: Native support for swaps, bridges, and lending protocols like Aave (The Block).

Conclusion

mUSD represents MetaMask’s bid to own the stablecoin layer of its 30M+ user ecosystem, combining regulatory rigor with seamless usability. Will its wallet-native design and Linea incentives help it carve a niche against giants like USDC and USDT?