MetaMask, the popular browser-based wallet extension developed by ConsenSys, has announced the release of mUSD, a new U.S. dollar-pegged stablecoin designed to facilitate seamless payments and yield-bearing on-chain interactions on both Ethereum and its Layer-2 network, Linea. The token is backed 1:1 by dollar-equivalent collateral held in regulated trust accounts, ensuring full asset backing and regulatory compliance in key jurisdictions.
The mUSD stablecoin integrates with MetaMask’s existing wallet interface, enabling users to mint, redeem, and transfer mUSD with a single click, while benefiting from gas-efficient transactions on Linea. MetaMask’s product team has also revealed plans to introduce a Visa-compatible debit card that will allow direct spending of mUSD across merchant networks, with instant on-chain settlement and minimal conversion fees. The card rollout is scheduled for Q4 of this year, pending regulatory approval in supported regions.
MetaMask’s developers emphasize that mUSD is built on a multi-layered collateral architecture. A primary reserve of high-quality, short-duration U.S. Treasury bills is held under the custody of licensed trust companies, while a secondary on-chain reserve of tokenized dollar-backed stablecoins such as USDC and USDT serves as liquidity buffers. The protocol implements continuous proof-of-reserve attestations published on-chain, audited by leading accounting firms to maintain transparency and trust.
By offering yield-earning opportunities through integrated DeFi lending markets, mUSD users can earn competitive interest rates via established platforms like Aave and Compound, directly from within the MetaMask UI. The project has also introduced a governance framework, DAO-controlled treasury management, and a capped token supply to prevent dilution and maintain peg stability.
Industry analysts note that mUSD’s introduction by a leading wallet provider is a significant step toward broader mainstream adoption of stablecoins for everyday use. It may also pressure other wallet vendors to incorporate native payment rails and financial services within their user interfaces. As MetaMask continues to expand its product suite, mUSD could serve as a critical on-chain settlement layer for both retail transactions and institutional payment flows.
MetaMask’s team confirms ongoing discussions with major payment processors and regulatory bodies to ensure global compliance, anticipating that mUSD could become one of the most widely used stablecoins by the end of next year. The launch underscores MetaMask’s commitment to delivering secure, user-centric financial products that bridge the gap between decentralized finance and real-world payment systems.
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