MetaMask Planning to Introduce Stablecoin in Collaboration With Stripe?
MetaMask Plans to Launch Stablecoin, mmUSD, in Partnership with Stripe
MetaMask, the popular crypto wallet, is reportedly planning to launch its own U.S. dollar-pegged stablecoin called MetaMask USD (mmUSD) in partnership with Stripe. The project aims to create a stable, liquid currency that would power wallet payments, token swaps, and broader decentralized finance (DeFi) applications within the MetaMask ecosystem.
Stripe will issue the stablecoin, while the M^0 network will handle the decentralized issuance and off-chain settlement to optimize speed and scalability. If mmUSD gains traction, it could become the default currency for millions of MetaMask users, further solidifying MetaMask’s position as a comprehensive crypto financial solution.
The crypto-linked debit card, a separate development, allows users to spend crypto directly from their MetaMask wallet without requiring bank involvement or manual top-ups. The card, built in partnership with Mastercard and Baanx, is not dollar-pegged like most stablecoins in circulation, with nearly 99% of the current $250 billion in stablecoins being dollar-pegged.
Simon Jones, the Chief Commercial Officer at Baanx, stated that the aim of the card is to create a "non-custodial neobanking" experience. The initiative follows MetaMask’s recent introduction of the crypto-linked debit card, showing a broader push into crypto payments.
However, the mmUSD project is still in its early stages with no confirmed launch date, and neither MetaMask nor Stripe has made any official announcement yet. The stablecoin would integrate directly with decentralized tools and could anchor MetaMask’s ecosystem liquidity, aiming to reduce crypto volatility in usage.
There are some concerns noted by critics about centralization risks due to Stripe’s role and the competitive stablecoin market dominated by established tokens like USDC and USDT. Federal Reserve Governor Christopher Waller's comments on stablecoins do not directly apply to the crypto-linked debit card.
If successful, the mmUSD project could further solidify MetaMask’s position as a comprehensive crypto financial solution. It remains unofficial and speculative until confirmed by the companies involved.
- MetaMask's planned stablecoin, mmUSD, partners with Stripe for issuance, aiming to provide a stable and liquid currency for wallet payments, token swaps, and DeFi applications within the MetaMask ecosystem.
- Noting the success of the crypto-linked debit card, a separate development by MetaMask, Baanx, and Mastercard, the company also looks to integrate stablecoins, with mmUSD potentially becoming the default currency for millions of MetaMask users.
- The introduction of the mmUSD stablecoin, along with the crypto-linked debit card, signifies a broad push by MetaMask into crypto payments and finance, despite concerns over centralization risks and competition from established stablecoins like USDC and USDT.
