Popular self-custodial wallet, MetaMask has developed a stablecoin, $MUSD pegged to the US dollar. The company announced the new token on Thursday through an official blog post.
MetaMask, in the statement disclosed that it collaborated with M0 and Bridge, a company owned by Stripe. The wallet is leveraging the support of the two partners to ensure compliance, transparency, and interoperability for the stablecoin. As per the project team, the token is not yet available for users but it will launch later in 2025.
As announced, the stablecoin will initially launch on the Ethereum network and Linea, allowing seamless access to the token. According to the firm, the launch of $MUSD on the Linea network is aimed at supporting the growing DeFi ecosystem and network expansion of the layer 2 blockchain.
By that, the issuer aims to tap into the growth of the Linea network and position $MUSD for integration with core protocols, lending markets, decentralized exchanges, and other custodial platforms. Meanwhile, the company went on to establish that the newly introduced stablecoin supports on-ramps, swaps, and bridging.
With the stablecoin, MetaMask promises a “seamless, dollar-denominated stablecoin experience for holding, spending, and transacting in web3.” Furthermore, MetaMask said the token will soon become available for spending through the MetaMask Card while it will be further integrated into the ecosystem of the hot wallet.
Gal Eldar, MetaMask’s product lead opined that the newly created token is a key step in connecting the world on-chain. The executive added that $MUSD will help eliminate the barriers and costs that come with exploring the web3 space for more market opportunities.
How improved legislation has enhanced investors’ confidence in the stablecoin market
However, $MUSD launched amid the global adoption of stablecoin and the recent approval of the US GENIUS Act. The new legislation creates a regulatory framework for stablecoins and other assets pegged to a real-world asset.
To an extent, the bill has helped improve the transparency of stablecoins by demanding a monthly publication of stablecoin reserves. Also, it mandates that all digital assets within the framework maintain a 100% reserve backing that includes cash, US Treasuries, and many others.
In recent times, tokens like USD1, RLUSD, USDG and USDY have entered the market as the race to take over the stablecoin market continues to heat up. Currently, Tether’s USDT is enjoying a strong dominance in the stablecoin market with controlling more than $167 billion of the sector’s $287 billion value.
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