What is MetaMask USD (mUSD)? Explained for Beginners

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MetaMask USD (mUSD) is MetaMask’s own stablecoin, designed to simplify and make crypto usage more practical. Unlike regular cryptocurrencies, which can fluctuate in value, mUSD is pegged to the U.S. dollar, meaning one mUSD is always worth approximately $1. The stablecoin is built directly into the MetaMask wallet. This means that users can buy, hold, swap, send, and even spend it without relying on outside services.

In this guide, we will cover all you need to know about MetaMask USD, including its uses, fees, security features, and more. Whether you’re new to cryptocurrency, an active decentralized finance (DeFi) participant, or exploring Web3 payments, this article will help you understand mUSD’s potential and how to utilize it with confidence.

What is MetaMask USD (mUSD)?

MetaMask USD (mUSD) is a stablecoin launched by the entity behind the popular MetaMask wallet. It runs on both Ethereum and Linea, MetaMask’s layer-2 network. The stablecoin was issued by Bridge, a Stripe-owned platform that manages regulatory compliance, reserves, and licensing.

On the blockchain side, mUSD utilizes the M0 protocol, which helps maintain its value stability and ensures smooth movement between different networks.

Unlike many stablecoins that rely on external tokens or added compatibility steps, mUSD is built directly into MetaMask’s ecosystem. This native design makes actions such as acquiring stablecoins, swapping between assets, and bridging across networks much simpler and smoother, while eliminating the need for intermediaries.

mUSD is fully integrated with MetaMask’s core features, including swaps, transfers, and bridges, thereby enhancing the user experience. It is designed to blend the advantages of DeFi with practical, everyday usability. With mUSD, users can fund their wallets and move assets across Ethereum and Linea.

mUSD will hope to win market share from more widely adopted incumbents such as Tether (USDT), USDC, and PayPal USD (PYUSD).

Brief History of MetaMask USD

On August 21, 2025, MetaMask, the self-custodial cryptocurrency wallet, publicly announced that it would launch MetaMask USD (mUSD). The platform explained that mUSD was being built in partnership with Bridge and M0.

The stablecoin was officially launched on September 15, 2025, on Ethereum and Linea, MetaMask’s layer-2 network. The project positioned mUSD as a foundational asset within DeFi, with planned integrations into lending markets, decentralized exchanges, and custodial services. At the time of writing, mUSD had a circulation supply of around $65 million.

MUSD Price Chart

Notably, mUSD was launched at a time of increasing regulatory clarity for stablecoins in the U.S. A few months before its debut, Congress passed the GENIUS Act, which introduced reserve requirements, licensing standards, and redemption obligations for stablecoin issuers.

Why MetaMask Introduced mUSD

MetaMask launched mUSD to address specific problems and to unlock new possibilities. They are:

Reduce Friction for Web3 Onboarding

Many users find it confusing to convert fiat into cryptocurrency, select the right stablecoin, transfer tokens across different chains, or worry about compatibility issues.

With mUSD built into MetaMask, the process becomes smoother. Users can on-ramp, swap, and bridge without leaving the wallet.

Lower Costs & Simpler Experience

Using external stablecoins often involves additional steps, increased slippage, multiple smart contract approvals, and higher gas costs. With mUSD, some of these layers can be streamlined or eliminated. This will reduce costs for people onboarding directly into the self-custodial wallet.

Cross-Chain Utility

With the increasing use of multiple blockchains, MetaMask introduced mUSD to help users avoid costly multiple conversions or juggling different stablecoins across different chains.

Leverage MetaMask’s Large, Existing User Base

MetaMask is already one of the most used self-custodial wallets with tens of millions of users. By building their own stablecoin, they can provide direct value to those users, rather than relying entirely on third-party stablecoins.

It also strengthens its position at the heart of the stablecoin and DeFi ecosystem.

Real-World Use & Payments

Beyond DeFi, MetaMask plans for mUSD to be spendable via the MetaMask Card at merchants globally. This means the stablecoin will not be limited to trading, swapping, or lending. mUSD can also be used for everyday payments, making them more practical in daily life.

How Does MetaMask USD Work?

MetaMask USD (mUSD) combines off-chain compliance and reserve management with on-chain infrastructure & usability.

On-Ramp/Minting

Users can obtain mUSD by converting fiat currencies, such as USD, through MetaMask’s built-in “Buy” feature, which connects to regulated on-ramp partners.

Bridge mints new mUSD tokens and ensures they are fully backed by reserves, such as cash or equivalent assets held off-chain.

Holding & Using in Wallet

mUSD is an ERC-20 compatible token, so once minted, it can be viewed, held, transferred, or used for DeFi purposes inside MetaMask, just like any other ERC-20 token.

Swapping/Transacting

Within MetaMask, users can swap mUSD using MetaMask’s swap features or via decentralized exchanges (DEXs) that support it. Because it is a stablecoin, pools for mUSD are likely to have lower slippage when trading against other stablecoins.

Bridging/Cross-Chain Movement

mUSD is designed to be interoperable across chains like Ethereum and Linea via M0’s liquidity network/bridges. That means if you have mUSD on Ethereum, you can potentially move it to Linea or vice versa via trusted bridges, subject to fees.

Future Use Cases

MetaMask has announced plans for mUSD to be usable via the upcoming MetaMask Card, which will allow spending at merchants that accept Mastercard.

Potential Risks

User Error: Loss of seed phrases, private keys, or sending tokens to the wrong address can result in permanent loss.
Smart Contract Risk: mUSD relies on smart contracts; bugs or exploits could result in the loss or freezing of funds.
Network Risk: Ethereum and other networks may experience congestion or high gas fees, which can impact transaction costs and timing.
Wallet Risk: Although MetaMask is widely used and audited, browser or device malware could compromise access.
Regulatory Changes: Although mUSD is designed with regulatory transparency, changes in local laws may impact its usability or acceptance in certain regions.

How MetaMask Secures Your USD Balance

Fully-Backed Reserves: mUSD is backed 1:1 by liquid dollar-equivalent assets, such as U.S. cash or short-term Treasuries, ensuring every token is fully reserved.

Non-Custodial Control: MetaMask is a non-custodial wallet, meaning you retain control over your private keys. Only you can access and authorize transactions with your mUSD.

Encrypted Storage: Private keys and seed phrases are encrypted on your device for added security. MetaMask never stores your private keys on its servers, reducing the risk of large-scale hacks.

Integration with Hardware Wallets: You can connect Ledger, Trezor, and other hardware wallets, keeping your keys offline and secure while using MetaMask for transactions.

Transparency & Attestations: MetaMask promises real-time reporting of reserves. This means users should be able to see data on the amount of asset backing compared to the number of mUSD tokens issued.

How to Get MetaMask USD

You can acquire MetaMask USD (mUSD) directly within the MetaMask wallet using various payment methods:

PayPal
Apple Pay
Google Pay
Bank Transfer
Credit or Debit Card

Buying mUSD via MetaMask

Open the MetaMask app on your device.
Navigate to the “Buy” section.
Select mUSD
Choose a payment method, e.g, credit card, bank transfer.
Specify the amount of mUSD you wish to purchase.
Follow the prompts to complete the transaction.
Once purchased, mUSD will be credited directly to your MetaMask wallet.

Converting USDC/USDT into mUSD

Steps to convert USDC or USDT into mUSD:

Open the MetaMask app or browser extension.
Tap the “Swap” button in your wallet interface.
Choose USDC or USDT as the token you want to swap. Select mUSD as the token you want to receive.
Enter the amount you want to convert.
Review transaction
Confirm the transaction.

How to Use MetaMask USD

Once you have mUSD in your MetaMask wallet, you have several options for using it. There are:

Holding & Managing mUSD

Users can view their balance in the main wallet interface or the NFTs/Portfolio tabs. mUSD behaves like other ERC-20 tokens, so you can store it safely alongside other crypto assets.

Sending & Receiving

You can receive mUSD by sharing your wallet address with others. Send mUSD to any wallet that supports ERC-20 tokens.

Swapping & Trading

You can use MetaMask’s Swap feature to exchange mUSD for other cryptocurrencies like ETH, USDC, or USDT. Confirm the exchange rate, fees, and network before approving the swap.

Paying with mUSD

Some platforms and marketplaces accept stablecoins, such as mUSD. On networks or wallets that support it, you may be able to pay transaction fees directly with mUSD instead of ETH.

Earning & DeFi Opportunities

Users can deposit mUSD in supported decentralized finance (DeFi) protocols to earn yield. Participate in liquidity pools or lending platforms that accept stablecoins.

Sending and Receiving mUSD

Sending mUSD

Open the MetaMask app or browser extension.
Select mUSD from your token list.
Tap “Send” and enter the recipient’s wallet address carefully.
Specify the amount of mUSD you want to send.
Confirm Transaction

Receiving mUSD

Open the MetaMask mobile app or browser extension.
Tap “Receive” to view your wallet address
Copy and share your wallet address
Once they send mUSD, it will be credited to your wallet.

Swapping mUSD for Crypto

Using MetaMask’s built-in swap functionality, you can swap mUSD for other cryptocurrencies like ETH and USDC.

Open MetaMask wallet.
Navigate to the “Swap” section in the wallet interface.
Choose mUSD as the Token you want to swap from, and select the cryptocurrency you want to receive, e.g., ETH, USDC, BTC.
Specify the amount of mUSD you want to swap.
Review details like the estimated exchange rate, fees, and network.
Confirm the Swap, and the chosen cryptocurrency will appear in your wallet after the swap completes.

MetaMask USD in DeFi

mUSD can be used in DeFi to lend, borrow, provide liquidity, or stake to earn yield, all while maintaining a stable value. Its compatibility with major protocols and Layer-2 networks makes transactions faster and cheaper.

Lending and Staking with mUSD

Lending: Users can deposit mUSD into DeFi lending platforms that support stablecoins, such as Aave or Compound, to earn interest on their holdings. Lending allows your mUSD to generate yield while remaining in the protocol.

Staking: Currently, there is no official staking program for mUSD itself. Unlike native blockchain tokens, mUSD cannot be locked in a staking contract to earn rewards. Users can, however, provide mUSD as liquidity on decentralized exchanges, which may generate trading fees or yield incentives; this differs from traditional staking.

Popular Wallets and Exchanges Supporting mUSD

mStable Protocol
Uniswap V4
Atomic Wallet

MetaMask USD Fees Explained

Swaps

When swapping mUSD inside MetaMask, users pay three costs:

Liquidity provider (LP) fees – set by the decentralized exchange (varies by pool).

MetaMask service fee – usually 0.875% of the swap amount.

Gas fees – required to process the transaction on Ethereum or Linea.

Sending & Receiving

MetaMask does not charge fees for sending or receiving mUSD. Users only pay the network gas fee, which varies depending on congestion and the specific blockchain used.

DeFi Platform Fees

Using mUSD on DeFi platforms may involve protocol fees, such as lending interest spreads or withdrawal costs. Trading slippage, especially when swapping large amounts.

Fiat On/Off-Ramp Fees

If buying or selling mUSD through MetaMask’s fiat partners like Stripe, MoonPay, payment processor fees apply. These typically range from 1% to 4%, depending on the region and payment method.

Future of MetaMask USD

mUSD’s future lies in deeper integration across both Ethereum and layer-2 ecosystems. As adoption grows, it is expected to be listed on major DeFi protocols, including lending markets, decentralized exchanges, and liquidity pools. This will increase its utility, liquidity, and trust within the broader crypto ecosystem.

Beyond DeFi, MetaMask aims to position mUSD as a stablecoin for everyday payments. Planned support for the MetaMask Card and global merchant acceptance through Mastercard could make mUSD usable in real-world transactions, bringing it closer to mainstream financial activity.

MetaMask Roadmap for Fiat Integration

At the time of writing, MetaMask supports fiat on-ramps, with plans to make the process of buying, selling, and spending mUSD smoother. The goal is to reduce friction by integrating fiat payment methods more directly into the wallet, eliminating the need for multiple intermediaries.

Over time, these improvements could lower fees and expand regional coverage. This would make mUSD more accessible to users worldwide, regardless of local banking restrictions or payment options. Thus, strengthening its role as a bridge between cryptocurrency and traditional finance.

Potential Role in Web3 Adoption

Stablecoins are often viewed as a gateway to Web3, as they simplify the management of volatile assets. By offering a stable value, simple onboarding, and global payment options, mUSD has the potential to become a key entry point for new users entering the decentralized ecosystem.

Its integration within MetaMask ensures that millions of existing users can access these features without needing to leave the wallet. This will help accelerate the shift toward mainstream use of decentralized technologies. If adoption continues to increase, mUSD could serve as a foundation for broader adoption of Web3.