- MetaMask’s mUSD stablecoin reached $65M in circulation within one week of its official launch.
- Linea holds 88.2% of mUSD supply, with Ethereum carrying the remaining 11.8% share.
- mUSD is fully backed by liquid assets and compliant with the U.S. GENIUS Act framework.
Marking a milestone, MetaMask’s mUSD stablecoin has reached a circulating supply of $65 million within a week of its launch. The token, officially introduced last Monday, grew from $15 million to $65 million by early this week. Data published on the stablecoin’s official website confirmed the rapid increase, highlighting strong early adoption and active deployment across blockchain networks.
Most of the circulating mUSD supply sits on Linea, according to data compiled by Seoul Data Labs using Dune analytics. As of Saturday, Linea accounted for 88.2% of the total. Ethereum carried the remaining 11.8%. The preference for Linea reflects the network’s ability to provide faster transaction speeds and lower costs while staying compatible with the Ethereum infrastructure.
MetaMask Launch Aligns with GENIUS Act Compliance
MetaMask announced mUSD last month as part of its stablecoin strategy. The token is issued using Bridge, Stripe’s stablecoin platform, and minted on M0’s decentralized infrastructure. MetaMask stated the coin is backed one-to-one by highly liquid dollar-equivalent assets. This structure ensures full collateralization and transparency while aligning with regulatory frameworks set for payment stablecoins.
The U.S. GENIUS Act, passed in July, governs mUSD. This law sets specific rules for payment stablecoins, including strict reserve management and public disclosure requirements. MetaMask confirmed compliance with the act, framing mUSD as a regulated option for individuals and institutions. Adherence to the framework provides clarity for institutional investors who require compliance before participating in stablecoin markets.
Stablecoins are still a significant area of crypto. U.S. dollar-pegged stablecoins had a total supply of $279.8 billion as of Sunday. Tether (USDT) dominated in terms of market capitalization with $172.3 billion. With $65M already circulating, mUSD is a small share, but the regulatory framework and growth are indicative that someone’s gunning for bigger players.
Linea’s contribution to mUSD and its adoption is remarkable. The Layer 2 network fights off gas fees and transaction delays from Ethereum’s mainnet. With the most supply on Linea, MetaMask is giving users access to cheap stablecoin transfers and decentralized finance use-cases. Ethereum is still there for those who value direct interaction with the mainnet.
Related: MetaMask Partners with Tron to Enhance Cross-Chain Ecosystem
MetaMask Prepares for Multi-Chain and Global Payments
MetaMask is preparing for the broader deployment of mUSD across multiple blockchains. The expansion strategy would improve cross-chain functionality and allow integration with a wider range of decentralized finance protocols. The token already supports lending, token swaps, and yield farming. Liquidity programs have been introduced to attract market makers to decentralized exchanges and deepen trading pools.
The company also launched a global payments function for mUSD. On 15 September, MetaMask made its card compatible to pay with mUSD at 150 million global merchant locations. This integration enables users to choose from an increasing array of places, goods, and services where they can spend digital dollars without ever having to leave Ethereum as a payment method.
Since the GENIUS Act was passed, stablecoins have become a key point of interest for the crypto industry. Public comments on its implementation began to be solicited by the U.S. Treasury Department.
On the other hand, Kaia and LINE NEXT announced the launch of a stablecoin superapp, later this year, on LINE’s Dapp Portal. These moves are part of the wider movement towards regulated, utility-backed stablecoin offerings.
The launch of mUSD emphasizes how fast stablecoins could achieve circulation by being compliant and deployed across multiple chains. That remains to be seen if the token could hold momentum. MetaMask is framing mUSD as one entrant in a competitive arena, with regulatory clarity and liquidity among crucial factors.
