MetaMask, the popular cryptocurrency wallet from ConsenSys – the studio behind Ethereum, has officially announced MetaMask USD (mUSD), its own native stablecoin, confirming previous information.
mUSD will be issued by Bridge, a stablecoin issuance platform owned by Stripe, and minted through M0's decentralized infrastructure, the wallet said on Thursday. MetaMask added that mUSD will be fully backed at a 1:1 ratio by highly liquid and high-quality dollar-equivalent assets, with real-time transparency and cross-chain interoperability through M0's liquidation network.
"MetaMask USD is fully backed by US cash and short-term Treasury bonds, which generate yield," said Ajay Mittal, Vice President of Product Strategy at MetaMask. "MetaMask benefits from that yield, and in return, it allows us to improve the user experience across the entire stack – from reducing costs to smoother integration."
MetaMask stated that mUSD is the first stablecoin launched by a custodial wallet, positioning it as the default digital dollar unit across the entire MetaMask ecosystem.
"We believe the best incentive to hold mUSD is the improved experience it unlocks in DeFi – from depositing/withdrawing, bridging, swapping to spending," Mittal added. "Over time, we may introduce additional incentives to reward early users."
The mUSD stablecoin actually emerged earlier this month in an unintentionally early published governance proposal and was quickly taken down.
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The article MetaMask Launches mUSD Stablecoin on Ethereum & Linea first appeared on CoinMoi.
