Popular cryptocurrency wallet MetaMask plans to announce details of its new US dollar-pegged stablecoin, mUSD, this week. According to sources familiar with the matter, the token is slated for launch by the end of the month.
MetaMask, which has reached a large user base in the Ethereum ecosystem, will launch its stablecoin with support from Bridge and its stablecoin issuance protocol, M^0. Alternative asset management giant Blackstone, from the traditional finance world, will handle the custody and treasury management services for mUSD.
MetaMask's stablecoin plans were brought to the forefront last week when a governance proposal was accidentally published and quickly deleted. The platform, which boasts over 30 million monthly active users, aims to rival market-leading stablecoins like Tether's USDT and Circle's USDC with this move.
Bridge, acquired by fintech giant Stripe earlier this year, specializes in providing businesses with stablecoin-based payment infrastructure. M^0 is a prominent protocol used in stablecoin issuance processes.
Sources indicate that MetaMask's move is motivated by a desire to share in the returns generated by stablecoin reserves, which are typically generated by short-term, highly liquid assets like U.S. Treasury bonds.
*This is not investment advice.
