MetaMask USD (mUSD) May Increase Ethereum and Linea DeFi Liquidity With Fiat Backing From Bridge (Stripe) and M0

• MetaMask launches mUSD in 2025: fully fiat-backed stablecoin for Ethereum and Linea.

• Bridge (Stripe-owned) provides fiat reserves; M0 supplies decentralized infrastructure.

• mUSD targets improved fiat rails, simplified DeFi access, and potential liquidity growth in self-custodial ecosystems.

MetaMask USD (mUSD) launches in 2025 as a fiat-backed stablecoin for Ethereum and Linea; learn how to use mUSD in MetaMask and DeFi.

What is MetaMask USD (mUSD)?

MetaMask USD (mUSD) is MetaMask’s native stablecoin planned for release later in 2025. The token is designed as a fully fiat-backed digital dollar, with Bridge (a Stripe-owned service) managing the fiat reserves and M0 providing a decentralized issuance layer. The initiative targets Ethereum and Linea ecosystems.

How does mUSD work with Bridge and M0?

mUSD combines centralized fiat custody with decentralized issuance. Bridge is reported to provide fiat backing and reserve custody, while M0 supplies the protocol-level infrastructure for minting and redemption. This hybrid design is intended to meet regulatory reserve requirements while enabling self-custodial DeFi flows.

What ecosystems will mUSD support?

The launch will prioritize the Ethereum mainnet and Linea rollup environments to leverage existing MetaMask integrations and developer tools. Native support in MetaMask wallets aims to streamline fiat on-ramps, off-ramps, and stablecoin payments across supported networks.

Why does mUSD matter for DeFi and liquidity?

mUSD introduces a large self-custodial wallet provider into the stablecoin space, which may broaden fiat liquidity directly inside wallets. By integrating fiat-backed reserves with wallet-native flows, mUSD could simplify access to DeFi primitives without custodial intermediaries.

What are the regulatory and reserve implications?

The project is presented as fully fiat-backed, aligning with recent U.S. regulatory emphasis on reserve transparency and full backing for stablecoins. Bridge’s role in reserve custody is intended to satisfy compliance and audit expectations while M0 handles on-chain mechanics.

How to use mUSD in MetaMask (step-by-step)

1. Deposit fiat via Bridge: Use MetaMask’s integrated fiat channel to convert USD to mUSD via supported on-ramp methods.
2. Hold in self-custody: mUSD resides in the user’s MetaMask wallet under standard ERC-20 visibility.
3. Use in DeFi: Supply, lend, or swap mUSD on supported Ethereum and Linea protocols that recognize the token.
4. Redeem for fiat: Initiate a redemption back to fiat through the wallet’s off-ramp process managed by Bridge.

How does mUSD compare to other stablecoin types?

Below is a concise comparison to help readers understand mUSD’s design versus common stablecoin categories.

Frequently Asked Questions

Is mUSD fully fiat-backed?

Yes. MetaMask describes mUSD as fully fiat-backed with reserves managed by Bridge. This structure is intended to meet reserve transparency standards and regulatory expectations.

Will mUSD be available beyond Ethereum and Linea?

MetaMask’s initial rollout focuses on Ethereum and Linea. Expansion to other networks may follow once integrations and liquidity conditions are established.

Key Takeaways

• MetaMask USD (mUSD): A fiat-backed stablecoin planned for 2025, integrating Bridge for reserves and M0 for infrastructure.
• Wallet-native liquidity: mUSD aims to simplify fiat on/off-ramps directly inside MetaMask, supporting Ethereum and Linea.
• Compliance-first design: The model emphasizes full reserve backing and custodial transparency to align with evolving regulation.

Conclusion

MetaMask USD (mUSD) represents a strategic expansion of wallet-native financial rails, combining fiat-backed reserves and decentralized issuance. With Bridge and M0 as reported partners, mUSD is positioned to integrate closely with Ethereum and Linea, offering streamlined fiat access and potentially broader DeFi utility inside self-custodial environments. Stay updated at COINOTAG for launch details and protocol integration coverage.