A governance proposal circulating inside MetaMask’s group reveals plans to launch “MetaMask USD” (mmUSD) by a partnership with Stripe’s cost infrastructure, doubtlessly making a direct competitor to established stablecoins like USDC and USDT.
The proposal outlines constructing mmUSD on the M⁰ community for decentralized issuance and settlement, with Stripe serving because the issuing companion to offer regulatory readability and trusted fiat backing.
MetaMask Leverages 30M Consumer Base to Problem USDC Dominance
MetaMask serves over 30 million month-to-month energetic customers globally by some of the extensively used non-custodial wallets in Web3.
The proposed mmUSD would operate as a base foreign money all through MetaMask’s ecosystem whereas integrating with DeFi protocols like Aave for lending, borrowing, and yield alternatives.
The stablecoin initiative follows MetaMask’s latest card launch in partnership with Baanx and Mastercard, enabling customers to spend crypto immediately from self-custody wallets with out surrendering management to banks or exchanges.
Neither MetaMask nor Stripe has formally confirmed the event, leaving key particulars about reserve fashions and regulatory compliance unaddressed. In reality, the preliminary governance submit has been made personal.
The proposal aligns with an industry-wide stablecoin rush following the GENIUS Act passage, which established a federal regulatory framework for stablecoin issuance.
The laws sparked curiosity from main companies, together with Western Union, Interactive Brokers, and Remitly, all exploring stablecoin integration for cost modernization.
Stablecoin Market Explodes as GENIUS Act Unlocks Company Curiosity
The stablecoin sector has expanded quickly to over $250 billion in market capitalization, with Ripple CEO Brad Garlinghouse projecting development to $1-2 trillion throughout the subsequent few years.
The GENIUS Act, signed by President Trump in July, distinguishes stablecoins as cost instruments slightly than funding merchandise whereas establishing clear regulatory tips.
Western Union CEO Devin McGranahan introduced pilot applications in South America and Africa to modernize world remittance operations by stablecoins.
The corporate views stablecoins as alternatives to streamline cross-border transfers and enhance foreign money conversion in underserved markets the place world remittance charges common 6.6%.
Interactive Brokers founder Thomas Peterffy has additionally confirmed the agency is exploring stablecoin launch choices, doubtlessly enabling real-time funding for brokerage accounts.
The $110 billion market worth firm serves practically 3.9 million clients and already helps crypto buying and selling by partnerships with Paxos and Zero Hash.
Funds processor @remitly will quickly combine stablecoins into its world community, aiming to hurry up and scale back the price of worldwide cash transfers.#Remitly #Stablecoins https://t.co/VCG75mundR
— Cryptonews.com (@cryptonews) August 5, 2025
Most not too long ago, Remitly launched beta testing for its multi-currency digital pockets supporting each fiat and stablecoins, with reside deployment scheduled for September.
The Seattle-based fintech added stablecoin payout choices by Bridge, a Stripe-owned infrastructure supplier, whereas integrating USDC into inner treasury operations.
All these company adoptions come as Federal Reserve Governor Christopher Waller acknowledged the importance of stablecoins, noting that 99% of stablecoin market capitalization is linked to the US greenback.
The federation believed that “stablecoins can hold the greenback the world’s reserve foreign money” by making it extra accessible worldwide.
Company Giants Defy New Rules Whereas Adoption Accelerates
Coinbase and PayPal proceed providing stablecoin yield applications regardless of the GENIUS Act provisions explicitly banning curiosity funds from stablecoin issuers.
Each corporations argue the restrictions don’t apply as a result of they function as intermediaries slightly than direct issuers of the stablecoins they reward.
@Coinbase and @PayPal are pushing ahead with stablecoin yield applications, regardless of new US laws banning such incentives for issuers.#Coinbase #PayPalhttps://t.co/F4bTmQbl6J
— Cryptonews.com (@cryptonews) August 5, 2025
Coinbase CEO Brian Armstrong acknowledged, “We aren’t the issuer,” whereas defending the corporate’s 4.1% APY rewards on USDC holdings.
Although Coinbase co-developed USDC with Circle, it ceased formal issuing duties in 2023, with Circle now serving as the only issuer with out providing direct yield.
PayPal affords 3.7% annual returns on PYUSD holdings by each PayPal and Venmo platforms.
Whereas PYUSD bears PayPal’s identify, technical issuance by third-party agency Paxos permits PayPal to say exemption from GENIUS Act restrictions.
Beforehand, Senator Elizabeth Warren warned that non-public stablecoin launches might create privateness invasions and systemic dangers, predicting corporations would “come begging for bailout when it inevitably blows up.”
Regardless of criticism, world companies, together with Amazon, Walmart, JD.com, and Alipay, proceed exploring stablecoin integration.
The aggressive stablecoin house has intensified with roughly 20 million addresses now transacting with stablecoins on public blockchains.
MetaMask’s proposed entry would leverage its huge consumer base and Stripe’s compliance infrastructure to say its share of the market.
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