Unexpected Leak of Governance Proposal Reveals Plans, $mUSD to be Officially Announced This Week?
Continuing from the previous report by “Crypto City”, recent rumors suggest that the well-known Ethereum wallet MetaMask is about to launch its own dollar-pegged stablecoin. According to insiders, MetaMask may announce the launch of a dollar-pegged stablecoin named $mUSD as early as this week, with expectations for it to officially go live as a tradable asset by the end of this month. This plan was originally kept quite confidential, but an unexpectedly released Aave governance proposal last week leaked relevant details, which were subsequently deleted.
The proposal stated: “$mUSD is designed to be a core asset of the MetaMask ecosystem, providing a neutral and highly liquid base currency, natively integrated into various interfaces of MetaMask (wallet, Swap, buy/sell, and yield features).”
MetaMask has over 30 million monthly active users, and its official website indicates that the total number of users has reached 100 million. The timing of the stablecoin’s launch coincides with a friendlier regulatory environment in the United States, as Congress passed the GENIUS Act last month, providing regulatory guidance for stablecoins. The successful IPO of stablecoin issuer Circle has further boosted market confidence, with the company’s stock price soaring nearly 675% in the first two weeks of trading, currently remaining nearly 400% above its IPO price.
Partnering with Stripe and Blackstone to Create a Complete Stablecoin Ecosystem
According to a report by CoinDesk, MetaMask has established strategic alliances with several heavyweight partners to realize the $mUSD plan. Payment service giant Stripe, which earlier this year acquired the stablecoin platform Bridge for $1.1 billion, will assist in integrating stablecoin payment rail systems. On the technical side, MetaMask is collaborating with the stablecoin issuance protocol M^0 to handle the token issuance process.
Notably, the company has also brought in a heavyweight partner from the traditional finance sector, Blackstone Group, one of the world’s largest alternative asset management firms, which will be responsible for the custody and financial management services of $mUSD, including holding and managing the reserve assets that back the stablecoin. This combination of crypto-native technology and traditional financial expertise demonstrates MetaMask’s commitment to the stablecoin project.
As of the time of writing, both MetaMask and M^0 declined to comment, while Blackstone and Bridge have yet to respond.
Aiming for a $280 Billion Market, Revenue Sharing as a Major Incentive
MetaMask’s motivation for launching the stablecoin is similar to that of other large crypto platforms, primarily hoping to share the revenues generated from the underlying stablecoin assets, which typically come from investments in short-term, highly liquid bonds. Currently, the total market capitalization of the stablecoin market stands at $280 billion, with Standard Chartered Bank predicting that it could reach $750 billion by the end of 2026.
Recently, several large enterprises have announced stablecoin projects, including traditional financial institutions such as JPMorgan, Bank of America, Citigroup, Western Union, and Interactive Brokers, all reportedly entering the stablecoin market.
According to insiders, $mUSD will create new options for users within the MetaMask ecosystem while providing the company with additional revenue sources. If the timeline proceeds as planned, crypto users could witness the practical application of $mUSD by the end of this month.
This article is collaboratively reproduced from: Crypto City