MetaMask Stablecoin (mUSD) Set to Launch This Week, Sources Confirm

TLDR

• MetaMask will likely unveil its USD-pegged stablecoin (mUSD or mmUSD) this week
• The stablecoin is being developed with help from Stripe-owned Bridge and stablecoin protocol M^0
• Blackstone will assist with custody and treasury management services
• The stablecoin launch follows growing interest in the sector, with the market predicted to reach $750 billion by end of 2026
• MetaMask has over 30 million monthly active users according to their claims

Cryptocurrency wallet provider MetaMask is poised to announce details of its own USD-pegged stablecoin as early as this week, according to sources familiar with the matter. The wallet, which grew to popularity within the Ethereum ecosystem, has been working on this initiative with several major financial partners.

The new stablecoin, referred to as mUSD or mmUSD in various reports, was first revealed through a prematurely posted Aave governance proposal that was quickly deleted last week. According to one source, after this week’s expected announcement, the stablecoin could become a live asset by the end of August.

MetaMask, which claims to have over 30 million active monthly users, is developing its stablecoin with support from Bridge, a stablecoin payment rails facilitator that was acquired by fintech giant Stripe earlier this year for a reported $1.1 billion. The project is also being supported by stablecoin issuance protocol M^0.

Beyond these partnerships, MetaMask has enlisted traditional finance heavyweight Blackstone to handle custody and treasury management services for the token. This collaboration with a major asset manager suggests the project is taking a careful approach to ensure proper financial backing for the new stablecoin.

The Growing Stablecoin Market

The timing of MetaMask’s stablecoin launch comes during a period of heightened interest in stablecoins across both cryptocurrency and traditional finance sectors. The overall stablecoin market currently holds a total market capitalization of around $280 billion.

Standard Chartered, a UK-based bank, has predicted that the stablecoin market could reach $750 billion by the end of 2026, potentially tripling its current size. This growth forecast reflects increasing adoption and utility of dollar-pegged digital assets.

Several major financial institutions have recently announced their own stablecoin projects or expressed interest in developing them. Banking giants JP Morgan Chase and Bank of America, along with brokerage platform Robinhood, are among those exploring stablecoin initiatives.

Last month, the passage of the GENIUS Act by Congress provided clearer regulatory guidance for stablecoins, which are typically pegged to the value of the US dollar. This regulatory clarity has helped boost confidence in stablecoin projects.

Circle, the issuer of USDC stablecoin, recently went public with a very successful IPO that saw its stock price rise nearly 675% in its first two weeks of trading. Though it has since lost some of these gains, Circle’s stock remains about 400% above its initial public offering price.

MetaMask’s Expanding Services

The introduction of a MetaMask-branded stablecoin follows the wallet provider’s recent moves to expand its service offerings. According to reports, the stablecoin will serve as the main trading pair for various MetaMask services.

Like other large crypto platforms that hold user funds in major stablecoins such as Tether’s USDT and Circle’s USDC, MetaMask’s decision to launch its own stablecoin is likely driven by the opportunity to share in the yield generated by underlying assets. These yields typically come from short-term, highly liquid bonds such as US Treasuries.

A recent collaboration between MetaMask and Aave will allow wallet users to generate yield from Aave’s decentralized liquidity protocols through the MetaMask mobile app. Users will be able to access yields on USDC, USDT, and DAI, representing MetaMask Earn’s first step into DeFi lending beyond existing staking options.

MetaMask’s parent company Consensys has declined to comment on the potential stablecoin launch when reached for comment. Similarly, MetaMask and M^0 have declined to comment, while Blackstone and Bridge did not immediately respond to requests for comment.

According to prediction market Myriad, 52% of respondents believe that the Ethereum stablecoin market cap will exceed $145 billion in August, showing market optimism about stablecoin growth on the Ethereum network where MetaMask primarily operates.

The launch of mUSD could position MetaMask as not just a wallet provider but also as a more central player in the stablecoin ecosystem, potentially bringing new users into the space through its existing large user base.