MegaETH Unveils Native Stablecoins with Ethena to Keep Blockchain Fees Low

MegaETH announced the launch of a native stablecoin named USDm to help reduce transaction costs on its high-throughput layer-2 network. The network will embed USDm across applications and use revenues from reserve assets to subsidize sequencer fees, ensuring near zero fees for end users. USDm will initially be backed by Ethena’s USDtb, which itself holds shares in BlackRock’s tokenized money market fund. Additional vault tokens such as USDe may be added to the reserve basket in future stages to diversify collateral, improve yield stability, and further support fee subsidies.

The integration between MegaETH and Ethena marks a significant step in the trend of blockchain ecosystems issuing proprietary stablecoins. By leveraging Ethena’s proven infrastructure and yield-generating protocols, MegaETH expects to secure sustainable fee coverage while maintaining network security and decentralization. The collaboration reflects a broader movement of crypto protocols seeking to internalize utility tokens that capture on-chain revenue streams and directly influence monetary policy within their ecosystems.

In its announcement, MegaETH highlighted that USDm’s reserve yield will be routed to cover sequencer operational costs, allowing developers to build more cost-effective applications without external fee overhead. The initial backing by BlackRock-linked assets provides institutional credibility to USDm, positioning the stablecoin as a viable alternative to existing options dominated by Circle’s USDC and Tether’s USDT. Long-term plans include integrating Ethena’s governance token ENA and exploring cross-chain interoperability for USDm issuance on external layer-1 networks.

The move comes after the passage of the U.S. GENIUS Act, which introduced a regulatory framework for stablecoin issuers, and follows similar launches by MetaMask and Hyperliquid. MegaETH’s co-founder emphasized that USDm will create a win-win for network participants by lowering fees and increasing on-chain demand for collateralized tokens. Market observers view the issuance as a milestone in the evolution of protocol-native monetary products, signaling new models for funding blockchain infrastructure and aligning network growth with token economics.