MetaMask, Stripe Prepares to Launch Stablecoin “mmUSD”

Key Highlights

• MetaMask prepares to launch mmUSD stablecoin, according to the latest governance proposal
• mmUSD will be processed through Stripe’s financial infrastructure and M^0 network
• If approved, stablecoin will be added to Aave v3’s lending markets on Ethereum and Linea.

MetaMask, the popular Ethereum wallet with more than 30 million users, is reportedly preparing to launch its own stablecoin, MetaMask USD (mmUSD), in partnership with payments giant Stripe, according to the latest governance proposal. 

(Source: Front Runners)

MetaMask’s move is a major push into the $251 billion stablecoin market, to make crypto transactions faster, cheaper, and more accessible.

The proposal, authored by DeFi research firm TokenLogic, shows mmUSD’s potential to become a core liquidity asset across MetaMask’s ecosystem, including its wallet, swap service, and DeFi integration. It will be added to Aave v3’s lending markets on Ethereum and Linea. 

mmUSD will be issued through Stripe’s M^0 network, a regulated platform for on-chain dollar settlements. This will ensure compliance and stability.

Designed as a neutral, high-liquidity base currency, mmUSD is planning to streamline transactions in MetaMask’s products while deepening stablecoin liquidity in DeFi.

If approved, users could supply or borrow mmUSD on Aave v3.

Stripe’s Role in mmUSD’s Stability

Unlike most stablecoins issued by crypto-native firms, mmUSD will be processed through Stripe’s financial infrastructure. This partnership will ensure smoother conversions between fiat and crypto. 

Stripe’s involvement is a game-changer as its global payment rails could reduce transaction costs and settlement times, making mmUSD a practical option for everyday spending, remittances, and DeFi transactions.

The stablecoin will be pegged 1:1 to the U.S. dollar, similar to USDC and USDT, but with the added advantage of MetaMask’s deep integration into the Ethereum ecosystem. 

This could boost its rapid adoption among its existing user base while attracting newcomers wary of crypto’s volatility.

Stablecoins have become the backbone of crypto trading and decentralized finance (DeFi), acting as a bridge between traditional money and blockchain. 

MetaMask’s entry into this space could accelerate mainstream crypto adoption, especially as regulatory clarity improves.

In April 2025, the SEC confirmed that well-backed, dollar-pegged stablecoins are not securities, removing a major hurdle for projects like mmUSD. 

Stripe’s recent $1.1 billion acquisition of stablecoin platform Bridge further reflects its commitment to blockchain-based payments.

Despite the optimism, MetaMask and Stripe face stiff competition from Tether (USDT) and Circle’s USDC, which dominate the stablecoin market. Additionally, users will need compelling reasons to switch from established alternatives.

While a governance proposal has outlined mmUSD’s framework, key details, like launch timing, reserve mechanisms, and cross-chain availability, are still under wraps. 

If successful, the stablecoin could boost Ethereum’s transaction volume and even expand to other chains like Solana, where Stripe already supports crypto payments.

New Wave of Stablecoins Following GENIUS Act’s Approval

The financial world is undergoing a huge transformation as major banks and corporations race to launch stablecoins following the passage of the GENIUS Act, which established the first comprehensive U.S. regulatory framework for dollar-pegged digital assets.

The legislation’s strict requirements, including 1:1 reserve backing with the U.S. Treasuries, monthly audits, and robust anti-money laundering controls, have given traditional financial institutions the confidence to enter what was once considered crypto’s wild frontier.

Recently, USDe, a yield-generating stablecoin from Ethena Labs, has surpassed FDUSD to claim the spot as the third-largest dollar-backed token, following a 75% market cap increase since mid-July.

Wall Street Goes All-In

Bank of America, Citibank, and JPMorgan are leading the charge, with BofA CEO Brian Moynihan publicly stating the bank is prepared to “hold deposits in stablecoin form” as adoption grows. 

JPMorgan has already deployed JPMD, a deposit token on Coinbase’s Base blockchain that enables 24/7 institutional settlements—a direct challenge to traditional banking hours.

Retail Giants Integrate Crypto Payments

Beyond finance, consumer titans are getting in on the action:

• Amazon is exploring a stablecoin to streamline checkout and loyalty programs
• Walmart is reportedly developing a solution for faster supplier payments
• PayPal has expanded its PYUSD offerings with new yield-bearing features

The GENIUS Act’s dual federal-state oversight and explicit exclusion of stablecoins from securities classification have removed years of regulatory uncertainty. 

Industry analysts note the irony: institutions that once dismissed crypto are now battling to control what could become a $2 trillion market, reshaping global payments, according to the latest report.

As one fintech executive said: “This isn’t about embracing crypto—it’s about surviving the future of money.” With the rules now clear, the race to dominate the stablecoin era has officially begun.