MetaMask will Likely Launch its Stablecoin this Week

TL;DR

• Ethereum wallet MetaMask is reportedly working on its stablecoin and will likely unveil it this week. 

• The mUSD is reportedly in the works thanks to a prematurely posted governance proposal that was quickly deleted last week.

MetaMask Could Unveil its Stablecoin this Week

MetaMask, one of the leading wallet service providers in the crypto space, is likely to unveil details of its stablecoin later this week. This is according to a report by CoinDesk, citing a source familiar with the matter. 

Per the report, the U.S. dollar-pegged stablecoin, dubbed the MetaMask stablecoin (mUSD), was already reported to be in the works thanks to a prematurely posted governance proposal that was quickly deleted last week. 

The source added that after this week's potential announcement, the new dollar-pegged token will become a live asset at the end of this month. MetaMask is working to issue its stablecoin thanks to its partnership with stablecoin issuance protocol M^0 and Bridge, a firm that was acquired by fintech giant Stripe earlier this year.

Furthermore, MetaMask is also working alongside alternative asset manager Blackstone to assist with custody and treasury management services for the token. 

The stablecoin market is getting more competitive thanks to the recent passing of the GENIUS ACT in the United States. This legislation provides a regulatory framework for stablecoins, making it easier for more players to enter the ecosystem. 

MetaMask’s desire to launch a stablecoin is driven by the opportunity to share in the yield of underlying stablecoin assets, usually short-term, highly liquid bonds such as U.S. Treasuries.