MetaMask’s Upcoming Stablecoin Launch
MetaMask is poised to launch a new stablecoin, known as mmUSD, possibly as soon as this Thursday, according to an insider familiar with the plans who spoke to Decrypt. In a strategic partnership with payment processor Stripe, the Ethereum-based wallet provider aims to establish mmUSD as a key trading pair for its array of services. This development follows a recently retracted governance proposal by Aave, which initially surfaced last week.
Market Context and Regulatory Landscape
The initiative comes at a time of heightened enthusiasm for stablecoins, spurred by a more supportive regulatory landscape in the U.S. Notably, the GENIUS Act, recently passed by Congress, offers clearer guidelines for stablecoins typically pegged to the U.S. dollar. The interest has surged amid the recognition of such tokens by traditional financial institutions, alongside the noteworthy public offering of stablecoin issuer Circle, which saw its stock rise by nearly 675% within just two weeks of trading, although it has since settled at around a 400% increase from its initial price.
Several major corporations, including renowned banks like JP Morgan Chase and Bank of America, as well as brokerage firms such as Robinhood, have announced or expressed interest in developing their own stablecoin projects. Presently, the market capitalization of stablecoins stands at approximately $280 billion, but projections from Standard Chartered suggest that this figure could triple to $750 billion by the close of 2026.
Stripe’s Acquisition and MetaMask’s Features
In an email, Consensys, the software firm responsible for the development of MetaMask, declined to comment on the timing or details of the prospective launch. Decrypt has reached out to other parties involved, including Stripe and individuals related to MetaMask and Aave, for further insights.
Last year, Stripe made headlines by acquiring the stablecoin platform Bridge for an estimated $1.1 billion. Bridge’s technology enables businesses to accept stablecoin payments and aims to compete with established payment networks such as Swift, Visa, and Mastercard. Stripe’s CEO, Patrick Collison, expressed enthusiasm for nurturing exceptional stablecoin infrastructure in light of the acquisition.
In conjunction, a recent partnership between MetaMask and Aave includes features allowing wallet users to earn yield through Aave’s decentralized liquidity protocols via the MetaMask mobile application. Users will have access to yields from popular stablecoins like USDC, USDT, and DAI. Aave describes this integration as a significant advancement in making decentralized finance (DeFi) more accessible to everyday users, marking an expansion beyond traditional staking options.
MetaMask and Aave’s Market Position
With over 100 million users, MetaMask is one of the leading Ethereum wallets, while Aave boasts a total of over $55 billion in net deposits. Interestingly, a prediction market created by Decrypt‘s parent company, Dastan, reveals that 52% of participants believe that the Ethereum stablecoin market cap will surpass $145 billion by August.
