- New Metamask stablecoin, supported and provided by stripe.
- Made to support rapid, scalable MetaMask transactions.
- It is intended to rival major stablecoins such as USDT and USDC.
In the stablecoin space, Metamask is making moves to change things up. The organization has plans to launch a stablecoin that is pegged to the US dollar and will be issued by Stripe and given the name mmUSD – Metamask USD.
Source – X
An ambitious collaboration aims to connect conventional finance with DeFi through a high-liquidity digital currency, according to a governance proposal unveiled on X, the official MetaMask platform.
Stripe will take care of the issuance and use its trusted financial infrastructure. The stablecoin will be issued and settled on the M 0 off-chain network to maximize speed and scale.
That makes mmUSD a fundamental asset in the Metamask growing ecosystem, directly connected to its services to minimize volatility in transactions as well as make them more useful in altcoin swaps.
Could Metamask’s mmUSD Challenge USDC and USDT?
The intended Metamask USD will be venturing into the lucrative stablecoin market, which is estimated at a whopping 250 billion dollars. The most prolific crypto segment has been Stablecoins, whose user base is increasing around the world.
In terms of the organic diffusion and liquidity of mmUSD, the thirty million monthly active users of MetaMask could prove to be important.
MetaMask will enable compliance and fiat support through a credible infrastructure because of the partnership with Stripe. Stripe Bridge, known for supporting digital assets and enhancing cross-border transactions, will serve as the backbone for mmUSD operations.
The governance proposal proposes that mmUSD could transform DeFi usage patterns by acting as a core currency to lending and yield farming protocols such as Aave.
Such a strategic asset has the potential to niche out other leading stablecoins like USDC and USDT, fuelled by the presence of thousands of users on MetaMask, and backed by the infrastructural capability of Stripe.
Stablecoins and the Future of USD Digital Dominance
The use of stablecoins has driven the growth of the United States dollar in international markets. Federal Reserve Governor Christopher Waller has admitted that they are becoming increasingly significant to ensure the dominance of the USD in the digital age.
Ex-US Comptroller of the Currency Brian Brooks has said that stablecoins may serve to keep the dollar the global reserve currency because it would enhance their accessibility globally.
The shift by MetaMask fits with such macro trends, as interest in stablecoins is growing among corporations following the newfound regulatory clarity, such as the GENIUS Act. Such a regulatory environment favours innovations such as mmUSD, which seeks to achieve a balance between decentralization and compliance.
