- MetaMask is preparing to launch a dollar-backed stablecoin called mmUSD in collaboration with Stripe.
- The proposed mmUSD token is expected to be central to the MetaMask wallet ecosystem.
- Stablecoins are currently valued at over $268 billion worldwide.
- The mmUSD details surfaced following a governance proposal concerning integration with Aave.
- Other major fintech firms, including Paypal and Robinhood, have also developed or discussed their own stablecoins.
MetaMask plans to release its own stablecoin, mmUSD, pegged to the U.S. dollar, through a partnership with financial technology company Stripe. The initiative aims to make mmUSD the primary digital currency within the MetaMask wallet and its services.
A recent governance proposal revealed the launch, suggesting mmUSD would serve as a major trading pair in MetaMask’s suite of applications, such as wallet, swap, buying, selling, and earning services. The M^0 stablecoin platform is reportedly supporting the project as well.
The leak came from a governance post related to lending protocol Aave, which discussed integrating mmUSD. According to the now-removed proposal, “mmUSD is intended to be the cornerstone asset for the MetaMask ecosystem, providing a neutral, highly liquid base currency.” The proposal was deleted soon after, with Marc Zeller, founder of DAO service provider Aave Chan Initiative, confirming its authenticity and noting that it was revealed prematurely.
Previously, MetaMask and Aave partnered to allow users to earn rewards through Aave’s lending pools directly in the MetaMask mobile app. Spokespeople for M^0 Foundation and Stripe declined immediate comment, while a ConsenSys representative stated, “We’re always exploring ways to improve the MetaMask experience but we don’t comment on speculation.” MetaMask is developed by blockchain firm Consensys.
Stablecoins—digital tokens that follow the price of government currencies like the dollar—have seen strong growth in recent years. U.S. legislation passed in July set new rules for stablecoin issuance for both banks and non-banks. The sector currently is worth more than $268 billion, according to DefiLlama.
Investor demand in 2024 was highlighted when Circle, a leading stablecoin issuer, went public, with its stock jumping 186% in one day. Other fintech giants are also in the stablecoin race. PayPal has released a $962 million stablecoin, and Robinhood has explored starting its own similar token. Stripe’s purchase of the stablecoin project Bridge exceeded $1 billion earlier this year.
The UK neobank Revolut also reportedly has stablecoin ambitions and teamed up with MetaMask in the past. Market projections suggest that stablecoins could hit between $2.5 trillion and $3.7 trillion in total value within the next five years.
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