MetaMask’s mUSD: A Regulatory-Compliant Stablecoin Takes on USDT’s Market Leadership

Launched on September 15, 2025, MetaMask’s mUSD stablecoin has quickly gained traction, surpassing $65 million in circulation within its first week The Block [ 1 ]. This stablecoin, fully backed by dollar-equivalent assets such as U.S. Treasury bills, relies on Bridge (a subsidiary of Stripe) and M0’s decentralized infrastructure to provide liquidity and transparent operations The Block [ 1 ]. By early September, 88.2% of the mUSD supply was found on

, an Ethereum-compatible Layer 2 network, while the rest remained on The Block [ 1 ]. This distribution supports MetaMask’s strategy to improve cross-chain functionality and reduce user transaction fees.

The introduction of mUSD is part of MetaMask’s larger plan to incorporate stablecoins into its ecosystem, enabling features like fiat entry points, DeFi access, and everyday purchases through the MetaMask Card. Users can utilize mUSD for swapping, lending, and trading on both Ethereum and Linea, and have the flexibility to convert mUSD to fiat or spend it at any of the 150 million merchants worldwide that accept Mastercard MetaMask [ 2 ]. With a monthly user base of 30 million, MetaMask provides mUSD with a built-in audience, giving it an edge over competitors such as

and . Initial figures indicate that mUSD’s market capitalization hit $65.7 million, with a 24-hour trading volume of $62.6 million, demonstrating robust early interest MetaMask [ 2 ].

mUSD is designed with regulatory compliance as a central focus. It operates under the U.S. GENIUS Act, which sets federal standards for payment stablecoins, including requirements for reserves and disclosures. This regulatory alignment positions mUSD as a compliant contender in a market dominated by USDT and USDC. The overall stablecoin sector has reached $279.8 billion, with USDT accounting for $172.3 billion The Block [ 1 ]. Despite this, mUSD’s integration within wallets and its, as yet, undisclosed yield-sharing potential may provide users with seamless access to both liquidity and practical uses, potentially challenging established leaders.

MetaMask has optimized the issuance and scaling of mUSD by working closely with Bridge and M0. This partnership enables efficient minting and redemption processes using regulated custody, with daily audits of reserves. Unlike traditional stablecoins, which often face questions around transparency, mUSD’s operations are designed for openness. Its launch on Linea also features liquidity rewards for providers, incentivizing adoption in DeFi applications and decentralized exchanges. These benefits, combined with MetaMask’s substantial user base, lay a strong foundation for mUSD to claim a significant role in the stablecoin landscape.

Looking forward, mUSD aims to expand its multi-chain presence across Ethereum, Linea, and potentially other networks, positioning itself as a versatile cross-chain liquidity solution. The anticipated full rollout of the MetaMask Card by year-end will further connect digital assets with traditional finance, making everyday spending easier for users. Analysts suggest mUSD’s long-term prospects depend on maintaining its dollar peg, attracting liquidity, and adapting to changing regulations. With its strategic alliances and user-focused approach, mUSD is set to become a key player in the evolution of decentralized finance and the mainstream adoption of digital currencies.